My spouse gave me a gift, a watch. A friend of mine wanted to borrow my watch but I could not lend it to her. It values a lot to me
If it is a treasured gift, your friend should not be asking for it! how did you feel when she did ask you? 
I was surprised because she knew who gave me the gift, but she insisted.
Did she understand when you gave her the reason you didn't want to lend it to her? 
No! She didn't speak to me for days, she said I was mean and selfish.
She doesn't sound like a good friend to me! 
That's exactly what my sister said. She should have understood the reason why I could not lend her the watch.