Gold prices slipped from the key $1,900 level on Friday, as a potential Russia-US meeting next week cooled safe-haven demand that was fuelled by the Ukraine standoff, but the crisis has set bullion up for a third straight weekly gain.

Spot gold fell 0.3% to $1,891.72 per ounce, as of 0725 GMT, after touching its highest in eight months at $1,902.22 earlier in the session.

The metal on Thursday rose above $1,900 for the first time since June, as investors rushed to the safety of bullion after Ukraine tensions heightened.

US gold futures dropped 0.5% to $1,893.20.

US stock futures bounced and selling pressure eased in Asian share markets after the US Secretary of State agreed to a meeting with Russia's foreign minister late next week provided Russia does not invade Ukraine.

"We are seeing gold in extension of that invasion trade, said IG Markets analyst Kyle Rodda, adding that "the next technical level to watch is around $1,920, so there's certainly technical basis to see gold prices rise".

Spot gold may rise into $1,893-$1,900 range

US 10-year Treasury yields firmed, increasing the opportunity cost of holding non-interest-paying bullion.

Still, spot gold is set for a third straight weekly gain, up about 1.7% so far.

"Gold is benefitting from higher inflation and a weaker US dollar. Escalating Ukraine-Russia tension is enhancing the safe haven appeal of gold," ANZ bank analysts said in a note.

"Elevated inflation is pushing real rates further into negative territory, which broadly protects the downside for gold in the short term. Nevertheless, this could be offset by aggressive rate hikes by the Fed."

Spot silver rose 0.4% to $23.90 per ounce, but palladium dipped 0.9% to $2,344.71, with both set for weekly gains.

Platinum edged 0.2% lower to $1,087.49, but has still advanced about 5.7% so far this week.