Gold closed higher on Friday after data showing U.S. consumer prices rose in March tempered speculation the Federal Reserve will delay its first interest rate rise in nearly a decade.
The metal held above the $1,200 an ounce level, however, which it broke above earlier this week after a run of downbeat U.S. data led analysts to reassess expectations the Fed would raise rates in June.
Spot gold was up 0.6 percent at $1,204 an ounce, off an earlier high of $1,207.60. U.S. gold futures for June delivery closed at $1,203.10 an ounce, up $5.10 on the day.
Gold is sensitive to U.S. monetary policy, as rising rates would boost the dollar, in which the metal is priced, while lifting the opportunity cost of holding non-yielding bullion.