Gold prices dropped slightly on Friday, but still remained above $1,300 per ounce as investors digested news of US President Donald Trump saying a meeting with North Korea's leader could still go ahead. Spot gold lost 0.1 percent at $1,303.34 per ounce by 1:38 p.m. EDT (1738 GMT), yet was on track for a weekly gain of 0.9 percent, its biggest since March. Spot gold earlier hit a 10-day high at $1,307.80.
US gold futures for June delivery settled down 70 cents, or 0.1 percent, at $1,303.70 per ounce. "Gold has managed to hold onto a significant chunk of its gains made yesterday despite the US trading conciliatory messages with North Korea again, something which has boosted the global stock markets and the US dollar," said Forex.com analyst Fawad Razaqzada.
Julius Baer analyst Carsten Menke said the uncertainty over the US-North Korea meeting was likely to have only a temporary impact on gold, traditionally used as a safe place to park assets in times of instability. On Thursday, gold rallied above $1,300 an ounce after Trump said the meeting with North Korea was off.
Global shares also steadied, reducing the clamour for gold as a safer asset. Heading into a long holiday weekend in the United States, Dillon Gage's Walter Pehowich said trading activity was virtually mute. Gold had been trading in a range between about $1,310 and $1,360 since hitting a 1-1/2 year high in January but was pushed lower this month by a strengthening dollar and rising US bond yields, which reduce the appeal of non-yielding gold.
Meanwhile, silver lost 0.6 percent at $16.53 per ounce, headed for a weekly gain of 0.4 percent. It earlier hit $16.70, a 1-1/2-week high. Platinum dropped 1.4 percent at $896 per ounce, but up 1.9 percent on the week, while palladium declined 0.3 percent at $977.15, set for a 1.7 percent weekly gain.
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