Gold prices inched lower on Friday and were headed for the first weekly decline in three weeks as expectations of higher US interest rates and easing political tensions on the Korean Peninsula and Syria weighed on demand for the safe-haven metal.
Spot gold was down 0.1 percent at $1,344.10 an ounce at 0650 GMT, while US gold futures fell 0.2 percent to $1,346.30 per ounce. Spot gold fell 0.2 percent on the week.
"We don't see much fresh buying interest and there is some profit taking. The physical demand is also very weak. The market is not able break above $1,355, which is acting as a good resistance and causing some long liquidations," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
Investors were also relieved that no new US demands on trade came out of a summit between Japanese Prime Minister Shinzo Abe and Trump.
"The uncertainty over geopolitical risk and trade war tension has moved to the back burner this week and has made for a less compelling argument in the gold market," said Stephen Innes, APAC trading head at OANDA. "Traders are rehashing old topics amidst reasons to stay long into the weekend, but drawing few if any conclusions."
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