Gold prices slipped in range-bound trading on Friday as the dollar firmed slightly, with investors mostly shrugging off a potential broadening of conflict in the Middle East.
Spot gold was down 0.1% at $1,319.61 U.S. per ounce early Friday morning after rising to the highest since the end of April at $1,322.76 in the previous session. The metal was, however, still on track to register a first weekly rise in four.
U.S. gold futures for June delivery were nearly 0.2% lower at $1,320.20 U.S. per ounce.
Israel said it attacked nearly all of Iran's military infrastructure in Syria on Thursday, after Iranian forces fired rockets at Israeli-held territory for the first time in the most extensive military exchange ever between the two adversaries.
Gold is traditionally seen as a safe place to park assets in times of uncertainty or conflict.
Meanwhile, the U.S. dollar index on Friday edged slightly higher, but still held below a 4-1/2-month high hit on Wednesday, with tepid U.S. inflation data for April prompting traders to pare bets of faster rate hikes by the Federal Reserve.
A stronger dollar makes gold more expensive for holders of other currencies, while higher U.S. rates tend to boost the greenback.
