Gold prices languished near a five-week low on Friday, set for a decline of more than 1% this week, weighed down by a strong dollar, high U.S. Treasury yields and easing geo-political concerns.
Spot gold was steady at $1,316.34 U.S. per ounce early Friday morning not far from a low of $1,315.06 an ounce hit in the previous session, its weakest since March 21.
U.S. gold futures were down 0.1% at $1,317.20 U.S. per ounce.
The dollar hit a fresh 3-1/2-month high against a basket of currencies on higher U.S. yields, while the euro was hampered by a dovish tone from the European Central Bank.
The yellow metal was on track to fall over 1% this week, its second consecutive and the biggest weekly decline in four.
Strong Gross Domestic Product numbers may prompt faster interest rate rises in the United States and gold as a non-interest-paying asset could see demand taking a hit from higher rates.
Meanwhile, political risks were seen easing after North Korean leader Kim Jong Un and South Korean President Moon Jae-in met on Friday in the first summit for the two Koreas in over a decade. The meeting, aimed at ending their decades-long conflict, comes weeks before Kim is due to meet U.S. President Donald Trump.
Silver was up 0.1% to $16.49 U.S. per ounce. For the week, the metal is down over 3% so far, its biggest weekly decline since the week ending Feb. 2.
Platinum lost 0.1% to $905.20 U.S. per ounce, after matching a more than four-month low of $901 touched on Thursday.
Palladium eased 0.1% to $984.00 U.S. an ounce and has fallen over 4% so far this week, after two weeks of gains.
