Gold lost some traction on Friday, but was heading for a weekly gain as fund buying persisted and investors expected a G-20 summit will produce little in the way of a coordinated stimulus program.
Financial leaders from G-20 nations gathered in Shanghai against a backdrop of worsening economic conditions and a lack of wider consensus on how to fix the problems.
Spot gold was down 1% at $1,222.20 U.S. an ounce, while U.S. gold futures for April delivery fell 1.3% to $1,222.90 U.S. an ounce.
Gold, headed for its fifth weekly gain in six weeks, has risen 16% this year as share prices have tumbled and fears of a global economic slowdown increased. It hit a one-year high of $1,260.60 U.S. this month, further supported by the repricing of expectations for U.S. interest rate rises.
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