Gold edged up in early trade on Friday after registering its biggest one-day fall in over three weeks in the previous session, supported by a weaker dollar, and was still headed for a third straight weekly gain.

Spot gold was up 0.2 % at $1,281.30 an ounce at 0107 GMT. Bullion, which has risen 0.7 % this week so far, fell one percent on Thursday to notch up its biggest one-day loss since May 24.

U.S. gold fell one percent to $1,285.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.20 % to 902.53 tonnes on Thursday, the highest since October 2013.

Asian physical gold demand remained subdued this week as the metal rallied to its highest in nearly two years, with discounts in India widening the most in 3-1/2 months as consumers shied away from making new purchases. 

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