Gold futures capped the longest run of weekly losses in 12 years as investors flee bullion-backed funds on bets stronger economic growth will bolster the Federal Reserve's case to raise US interest rates.

A rebound on Friday (Saturday AEDT) wasn't enough to avoid a seventh weekly decline, the longest stretch since May 2004. The central bank indicated the previous week it may raise rates three times in 2017, moves that could be bolstered by a report on Thursday showing the US grew at the fastest pace in two years. Holdings in exchange-traded funds backed by bullion fell a 30th day.

It was an erratic year for gold, with the biggest first-half rally in almost four decades giving way to a retreat as focus shifted from political uncertainty on the Brexit vote to US monetary policy. Holdings in ETFs have shrunk continuously since Donald Trump won the US election, fuelling optimism fiscal stimulus will energise the economy and driving a gauge of the dollar to the highest levels since at least 2005.

"It's a changing of the trend," said Erik Tatje, a market strategist at RJO Futures in Chicago. "As we look at a rising interest-rate environment, that will add value to the dollar. That will put tremendous downside pressure on gold."

Gold futures for February delivery rose 0.2 per cent to settle at $US1133.60 at 12.37pm on the Comex in New York, paring its loss this week to 0.3 per cent. Bullion increased on Friday as the US dollar reversed gains and some chart-following traders saw supportive momentum indicators, Tai Wong, director of commodity products trading at BMO Capital Markets in New York, said.

Gold for immediate delivery declined 0.2 per cent this week, also marking a seventh weekly decline, the longest stretch since August 2015.

Holdings in ETFs declined 3.92 tons to 1779.3 tons on Thursday, extending the longest run of declines since September 2004.

Traders are pricing in a 74 per cent chance of a rate increase by June, following the Fed's 25 basis point hike this month.

In other precious metals:

• Silver futures for March delivery -0.7% to $US15.759/oz on Comex
• Platinum futures for April delivery -1.5% at $US895.00/oz on New York Mercantile Exchange
• March palladium futures -0.3% to $US654.85/oz on Nymex