Gold rose on Friday as forecast-beating euro zone inflation boosted the euro against the dollar, while global stock markets retreated from Wednesday's record highs as concerns about global trade.
The euro rose towards 5-1/2 month highs as the data was seen as keeping pressure on the European Central Bank to start dialing back stimulus measures as early as June. That lifted gold, which is priced in the U.S. currency.
Spot gold was up 0.29 percent to $1,267.39 while U.S. gold futures for June delivery were up $2.40 to $1,268.30. Spot gold was down 1.4 percent from last Friday's level, its biggest weekly loss since early March.
"At this point, $1,300 looks like it's more appealing for gold than $1,100," ING analyst Hamza Khan said.
"A bit more weakness in the dollar, combined with more movements around North Korea, could be the situation that sets the stage for higher gold prices."
Jitters over tensions in the Korean peninsula and the threat of a strong showing from an anti-European Union candidate in the French elections helped drive gold higher last week.