Gold bounced around on Friday as the U.S. dollar extended gains, while platinum dropped more than 2 percent on persistent selling in Japan following this week's report from top distributor Johnson Matthey.

Spot gold fell to an intraday low of $616.10 an ounce, hit a high of $618.90 and was at $618.00/619.00 by 0723 GMT.

Gold was last quoted at $618.00/619.00 in New York on Thursday, when the dollar gained after the U.S. government said consumer prices fell by a greater-than-expected 0.5 percent in October.

"I reckon we may hit $610 and trade below that. Resistance is going to be around $630, and I think oil can become more of an issue again should it break $60," said a dealer in Sydney.

Gold fell nearly $6 in the U.S. market as the dollar firmed after the CPI data reinforced views the Federal Reserve will keep interest rates steady. The metal has lost around 3 percent in value since rallying to a two-month high of $636.50 last week.

A rising U.S. currency makes dollar-denominated gold more expensive for holders of other currencies.