Gold slipped on Friday, holding near a four-month low hit in the previous session and on track for its steepest weekly drop since June, as the euro softened and US talks to avoid a fiscal crisis stalled again, turning away investors.

Gold fell $1.38 an ounce to $1,645.76 by 0648 GMT, after hitting a low of $1,635.24 earlier, just shy of a four-month low of $1,635.09 touched in the previous session. US gold for February added $1 an ounce to $1,646.90 after hitting a low around $1,636.

Copyright Reuters, 2012