Gold prices firmed on Friday after a volatile session the previous day saw prices soaring to 18-month highs before closing lower, as Moscow's invasion of Ukraine continued, while supply concerns out of Russia supported palladium prices.
Spot gold gained 0.3% to $1,908.53 per ounce as of 1044 GMT and was set for a fourth consecutive weekly gain. US gold futures, however, shed 0.8% to $1,910.5.
Prices of the safe-haven metal rallied over 3% to as high as $1,973.96 after Russia attacked Ukraine by land, air and sea on Thursday. Missiles pounded the Ukrainian capital on Friday.
"The market had got ahead of itself to a large extent," independent analyst Ross Norman said, adding gold could have been used to fund possible margin calls after a sharp decline in equities, triggering the pullback in bullion prices from highs.
"We have to expect market volatility in precious metals... At the moment, geopolitical tensions trump issues concerning economic ones."
Palladium rallies, gold rises above $1,900 with focus on Russia
Palladium jumped 3% to $2,474.68 and was on course for a third weekly rise.
The market touched $2,711.18 on Thursday, its highest since July last year, as investors feared possible supply disruptions out of Russia, a major producer of the metal.
"Gold and palladium prices will remain elevated and if the West brings something with more of a punch to the table, we could see them rallying once more," said Craig Erlam, senior market analyst at OANDA.
"There's plenty of appetite for gold as there remains enormous uncertainty. There's still a long way to go with this and it will take time for investors to reduce their safe haven exposure," Erlam said.
Exchange-traded funds that invest in gold and other precious metals have seen massive inflows this year.
Spot silver fell 0.1% to $24.18 per ounce, platinum slipped 0.6% to $1,050.76.
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