Gold prices tumbled 3.5 % to a two-week low on this week in choppy trade, moving well below the $800, giving up all of this week’s gains, as a bounce in the dollar and lower crude oil prices triggered heavy profit taking. Spot gold moved in the range of $817.90 - $782.35 a troy ounce.

The dollar gained against the euro but fell against the yen on this week as fears about the global credit crunch's impact and falling equity markets led investors to pare back on profitable but extended trades.

Crude oil futures were steady around $93 a barrel on Friday after falling the previous day on the back of a surprise build in U.S. crude stocks. Easing oil prices dent bullion's role as a hedge against oil-led inflation.

The dollar depreciated against major currencies, given ongoing concerns about global credit problems.

The euro eased to $1.4610 staying on the back foot against the dollar on expectations that euro zone economic growth may slow, while the European Central Bank remains determined to fight the risk of higher inflation.

Worries about fallout from the credit crunch continued to blow through foreign exchange and equity markets, having a knock on effect on gold.

Gold is traditionally seen as a safe-haven asset in times of financial stress but can get bundled in with commodities as an asset class to be sold when investors are feeling risk-averse.

Global gold demand in the third quarter rose 19 percent year-on-year to 947.2 tonnes on the back of robust inflows into bullion investment funds and improved jewellery consumption, industry-sponsored World Gold Council (WGC) said.