India, Feb. 28 -- Gold prices fell on Friday and were set for their biggest weekly drop since November as the dollar held gains from the precious session amid heightened concerns over a potential global trade war.

Spot gold dipped half a percent to $2,863.06 per ounce in European trade while U.S. gold futures were down 0.7 percent at $2,875.41.

Gold has fallen 2.5 percent so far this week after eight consecutive weeks of gains but is set for a gain of about 2 percent for February.

The dollar was on track for a 0.7 percent gain this week, making bullion expensive for foreign buyers.

The dollar strengthened for a third straight session as traders grappled with U.S. President Donald Trump's new tariff threats.

googletag.cmd.push(function(...