Gold is currently at $1,081.90 (+0.08%) near a three-month low amid an imminent Fed's rate hike. Investors will focus on U.S. economic data to assess strength of the economy, which would determine the timing a liftoff in rates. Higher rates would harm demand for the non-interest-paying precious metal.

Physical demand advanced amid Diwali festival in India, world's biggest consumer of gold.

Assets of SPDR Gold Trust, the biggest gold exchange-traded fund in the world, fell to 661.94 tonnes on Thursday, the lowest since September 2008.