IGI Logo

Gold retreated slightly from the key $1,900 level on Friday as a potential Russia-U.S. meeting cooled some nerves about an escalation in the Ukraine conflict, but the recent rally set bullion up for a third straight weekly gain.

Spot gold fell 0.5% to $1,887.71 per ounce by 1042 GMT, after earlier touching its highest since June 2021 at $1,902.22 en route to post a weekly gain of about 1.5%.

U.S. gold futures fell 0.7% to $1,889.20.

The U.S.-Russia meeting slated for next week is likely to keep a lid on gold, although there could be some selling interest going into the weekend, especially with a U.S. holiday on Monday, said Michael Hewson, chief market analyst at CMC Markets UK.

"The outlook for gold does look a lot more positive, but it's going to be really difficult to get back above those June peaks. We might find it trading between $1,910 and roundabout $1,870 over the next few days," Hewson added.

Helping global equities mark tentative gains, U.S. Secretary of State Antony Blinken agreed to a meeting with Russia's foreign minister Sergei Lavrov, boosting hopes of an end to the standoff. [MKTS/GLOB]

However, "The need for safety among market participants still appears considerable against the backdrop of the Ukraine crisis, meaning that gold remains in demand as a safe haven," Commerzbank analysts said in a note.

Finance leaders from the Group of 20 major economies were set on Friday to agree that rising inflation and geopolitical risks could threaten a fragile global recovery, as the Ukraine crisis and the pandemic cloud the outlook.

Spot silver inched 0.3% to $23.73, and palladium fell 2.8% to $2,300.68, with silver set for a weekly gain and palladium inching lower for the week.

Platinum was down 0.5% to $1,083.63. It surged about 5.5% this week, its highest weekly gain since mid January.