Tokyo - Gold held near $940 on Friday after falling the previous session, although prices looked vulnerable to declines in the absence of strong fundamentals.
The precious metal has mostly traded below $950 this week, at one point falling more than 3 percent from last week's high of $960.55.
Gold was at $940.15 per ounce at 02:36 GMT, up 0.1% from the notional New York close of $939.35.
US gold futures for December delivery were largely flat at $941.6 per ounce.
The absence of demand for gold jewellery, as demonstrated by falling imports in India, is weighing on gold, traders said.
India's July gold imports fell two-thirds from a year earlier as high prices dented demand in one of the world's top markets where gold jewellery is often given as gifts during festival seasons or at weddings.
"Gold is a luxury item but in this day and age money is going where it is needed... and a prime example of that happening is in India," said Kazuhiko Saito, chief analyst at Tokyo's Fujitomi.
Another mark of gold's declining attraction among investors is the slump in holdings of gold-backed exchange-traded funds.
The SPDR Gold Trust, the world's largest, said its holdings held steady at 1 065.49 tonnes as of August 20, unchanged for almost two weeks.
Saito said gold could also come under selling pressure in the days ahead if news of the suspension of the US' Cash for Clunkers auto rebates pressures oil prices.
Gold typically moves in line with crude, as it is often bought as a hedge against oil-led inflation.
The US government said it would end the popular programme on Monday as the plan's $3bn budget runs dry, a month after it was launched.
"As it looks now, there are no strong fundamentals to support gold prices," Saito said.
The euro slipped 0.3% to ¥133.79.
Against the dollar, the single European currency held steady at $1.4250.
Investors remained worried about the potential for further weakness in Chinese shares and shied away from risky investments.
Platinum was down 0.7% at $1 228 per ounce although the metal used in jewellery and autocatalysts, could come under upward pressure depending on developments in South Africa, the world's top producer of the precious metal.
Impala Platinum, the world's second-biggest platinum producer, said on Thursday that it would seek further talks with a South African union planning an indefinite strike next week.
