Gold prices fell on Friday, as the recovery of stock markets prompted investors to take profits after yesterday's rise in prices, but the gold market is still preparing to finish the week higher as the Fed continues to demonstrate caution in raising rates.
The stock markets rose on Friday, but are still ready to end the week with losses due to the growing uncertainty about the economic and political prospects in the United States.
Gold was traded at $ 1234.51 per ounce compared to US $ 1240.29 at the close of Thursday trading, and the US futures for June delivery fell $ 1.10 to $ 1236.40 per ounce.
Prices rose 1 % this week, mainly due to a 1.5 % rally on Thursday.
The metal was recently traded in a narrow range due to uncertainty about the US central bank raising interest rates.
The Fed chief Janet Yellen in a conversation with the former Fed chairman said on Thursday that the US economy is likely to justify a policy of further increases in interest rates. But the market participants in the futures of US interest rates continue to assess the chances of a rate increase in June, less than 20 %.
"Yellen said that the increase in interest rates (Fed) will be moderate, so that the markets do not expect the four rate hikes, as it was expected at the end of 2015," - said an analyst at LBBW Torsten Prettel.
Data of world's largest gold ETF fund, SPDR Gold Trust, indicated that its reserves little changed this week after the first in this year outflow of last week.
Demand for physical gold from Asia has also been sluggish in recent years, analysts said.
"The demand for gold in Asia today remains weak report Commerzbank (DE: CBKG).
Silver was traded at $ 15.223 for an ounce, compared with $ 15.21 at the close of trading on Thursday; platinum was $ 951.10 compared with $ 952, and palladium was at $ 534.50 versus $ 533.