NEW YORK: Gold retreated slightly from the key $1,900-per-ounce level on Friday as hopes for US-Russia talks brought some calm to wider markets, but lingering concerns over Ukraine kept bullion on track for a third straight weekly gain.

Spot gold was down 0.1% at $1,895.91 per ounce by 10:12 a.m. ET (1512 GMT), after earlier touching its highest since June 2021 at $1,902.22, en route to a weekly gain of about 1.9%.

US gold futures eased 0.2% to $1,898.40.

“The latest development around the Russia-Ukraine situation was positive and that saw a slight pullback in gold,” RJO Futures senior market strategist Bob Haberkorn said, adding that this would be short-lived as lingering tensions will continue supporting bullion.

US President Joe Biden said there was every indication Russia was planning to invade Ukraine. Russian-backed rebels and Ukrainian forces traded accusations on Thursday that each had fired across the ceasefire line in eastern Ukraine.

However, US Secretary of State Antony Blinken agreed to meet Russian Foreign Minister Sergei Lavrov next week, calming investor nerves and slowing demand for safe-havens.

“Investors have been seeking protection in haven assets like gold not only because of the Ukraine situation and heightened stock market volatility but surging inflationary pressures too,” Fawad Razaqzada, an analyst with ThinkMarkets, wrote in a note.

Finance leaders from the Group of 20 major economies were set on Friday to agree that rising inflation and geopolitical risks could threaten a fragile global recovery.

Gold is considered a hedge against soaring inflation and is often used as a safe store of value during times of political and financial uncertainty.

Elsewhere, palladium fell 1.8% to $2,324.18 per ounce. Platinum was down 0.5% at $1,084.54. It surged about 5.8% this week, its biggest weekly gain since mid-January.

Silver rose 0.8% to $24.01, on track for a weekly gain.