Spot gold was up 0.3 percent at $1,266.9 an ounce by 2:42 pm EDT (1842 GMT), on track to close April up 1.5 percent. US gold futures for June delivery settled up 0.2 percent at $1,268.30. "At this point, $1,300 looks like it's more appealing for gold than $1,100," ING analyst Hamza Khan said.
"A bit more weakness in the dollar, combined with more movements around North Korea, could be the situation that sets the stage for higher gold prices." Jitters over tensions in the Korean peninsula and the threat of a strong showing from an anti-European Union candidate in the French elections helped drive gold higher last week. However, it is now on track for its biggest weekly drop in seven as fading concerns over Korea and a strong showing in the first round of the French vote from centrist candidate Emmanuel Macron sharpened risk appetite, pressuring gold.
"Most of the correction should be done by now," Commerzbank analyst Daniel Briesemann said. Among other precious metals, silver was down 0.1 percent at $17.20 an ounce, after falling to $17.12, the lowest since March 15. Giovanni Staunovo, analyst for UBS Chief Information Office, said the bank shifted its three-month silver stance to bearish from bullish, cutting their price forecast to $16.50 an ounce from $20.
"The impact of gold's weakness on silver prices could be amplified by near-record speculative long positions. Longer term, silver should relatively outperform gold," Staunovo said. Spot palladium was up 1.2 percent at $825, having touched a two-year high of $831.50. It was the only weekly gainer among the precious metals, set to finish the week up 4.2 percent. Platinum was up 0.1 percent at $941.50.