Gold lost its gains on Friday, but supported by a softer dollar was heading for a third week of gains following a cautious note from the U.S. Federal Reserve on interest rates and uncertainty ahead of Britain's vote on European Union membership.
The metal, often seen as an insurance in times of financial and economic uncertainty, peaked at $1,315.55 U.S. on Thursday, its strongest since August 2014.
Gold then slid 1% as financial markets reacted to the suspension of campaigning for June 23's British referendum after a lawmaker was shot dead.
Spot gold was 1.2% higher at $1,294 U.S. an ounce. Bullion has risen 1.4% so far this week. U.S. gold for August delivery was down 0.1% at $1,296.80 U.S. an ounce.
Silver futures fell 0.9%to $17.45 U.S. an ounce after falling 2% on Thursday. Platinum futures fell 0.8% to $970.60 U.S. and palladium futures gained 0.6% to reach $531.50 U.S.
