The Australian dollar fell after gold prices dropped more than 1 per cent on Friday to a six-month low.

At 6.30am AEDT the local unit was trading at 103.02 US cents, down from 103.64 cents at Friday’s local close.

Gold prices hovered above $US1600 on Friday, having slipped below that level for the first time in six months after regulatory filings showed that several high-profile fund managers including George Soros cut back their bullion holdings.