The continued detention of Brunson has become a lightning rod in strained relations between Turkey and the US, leading Washington to slap economic and political sanctions on its North Atlantic Treaty Organisation ally.
Earlier in the session, the bullion fell as much as 1.2 per cent to $1,159.96, its lowest since January 2017.
Turkey's battered lira weakened 5 percent on Friday after a Turkish court rejected an American pastor's appeal for release, drawing a stiff rebuke from President Donald Trump who said the United States would not take the detention "sitting down".
Trump then called Brunson a "very innocent man" and said his arrest was "not fair, not right". "We haven't seen the last of that".
"We have more that we're planning to do if they don't release him quickly", Mnuchin said when asked by President Trump at a Cabinet meeting for an update on USA sanctions on Turkish officials. He later tweeted that the clergyman was a "great patriot" being held "hostage".
"We have responded to (U.S. sanctions) in accordance to World Trade Organization rules and will continue to do so", Pekcan told reporters on Friday. But the White House does not plan to lift the metals tariffs, which Sanders said were a national security issue. A senior USA official told CNN that in exchange for Turkey's release of Brunson, Israel agreed to release Ebru Ozkan, a 27-year-old Turkish woman held in Israel on suspicion of aiding Hamas, the Palestinian militant group that controls Gaza. Investors also fret over Erdogan's influence over monetary policy.
Mr Brunson has denied charges of espionage, but faces up to 35 years in jail if found guilty.
Washington wants the evangelical Christian freed but Turkish officials say the case is a matter for the courts.
Speaking to his supporters on Tuesday, Erdogan slammed the USA for using the economy as a "weapon" and said the Turkey was facing an "economic attack" and a "bigger, deeper operation". The lira lost almost 40 percent against the dollar this year and suffered a staggering collapse on the heels of Trump's announcement of increased tariffs on metals.
Trump, who doubled steel and aluminum tariffs on Turkey, said the steel tariffs have kicked in the aluminum tariffs will take effect soon.