Gold prices consolidated recent gains in Asian trading Friday, holding above $1,600 a troy ounce as jitters around Cyprus' bailout deal lent support.

Over the next few sessions, news from Cyprus will drive price direction, with any escalation in uncertainty likely to push prices higher as investors seek safe stores of value, analysts said. The European Central Bank has said it will cut off emergency funding to the island if it doesn't agree a bailout deal by Monday.