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Gold set for best week in three months, near April highs

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Gold eased on Friday on profit taking after posting its biggest one-day rise in nine months, but the safe-haven metal was trading near April highs and set for its best week in three months on geopolitical tensions and a softer dollar.

Gold posted its biggest jump since September on Thursday, as technical buying picked up on tensions in Iraq and was supported by the Federal Reserve's lack of commitment to raise interest rates. The dollar came under pressure this week after the U.S. Federal Reserve's comments that it could keep interest rates low in the longer term.

Symbol
Name
Price
 
Change
%Change
Volume
GOLD
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GOLD/USD
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SILV/USD
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SILVER
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PALL/USD
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PLAT/USD
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Spot gold fell 0.6 percent to $1,311 an ounce by 0649 GMT, after jumping 3.3 percent in the previous session, when it hit mid-April highs of $1,321.70. The metal has gained about 3 percent for the week.

Physical demand for gold was soft. Traders said what little demand they had seen earlier in week had been erased by Thursday's price jump.

Read MoreFed is behind gold's surge: RBC's Gero

"Demand was slightly better when prices had steadied around $1,270 but with this move above $1,300, we have seen a pull back," said a trader in Hong Kong.

Private sector gold demand in China, which last year surpassed India to become the biggest consumer of the yellow metal, will be flat to slightly lower this year, an official from the China Gold Association said on Thursday.

Among other precious metals, silver was little changed after jumping 4 percent in the previous session, while platinum group metals also eased after sharp overnight gains.

--By Reuters. For more information on precious metals, please click here.

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