Gold fell 1% on Friday as the dollar rose, with zero-yield bullion giving up gains from bets for a slowdown in monetary tightening later in the year as immediate focus turned to an impending rate hike next week.

Spot gold was down 0.9% at $1,648.46 per ounce by 1008 GMT, while U.S. gold futures dropped 0.8% to $1,652.10.

The dollar index rose 0.3%, eroding the appeal of rival safe-haven gold, while also making it more expensive for overseas buyers.