Economic Times: Gold down 1% but set for weekly gain

Gold dropped 1 per cent on Friday on pre-weekend profit taking, but bullion was still set to post a sharp weekly gain as wariness over the US Federal Reserve's message at next week's monetary policy meeting pushed the dollar down.

Bullion is on track for a 2 per cent weekly gain, set for its third consecutive weekly rise and its first three-week rise since March, prior to the two-day $225 selloff in mid April.

A rally to climb back over a key technical threshold at $1,300 an ounce earlier in the week prompted speculators fearing a reversal of the recent downward price trend to rush to buy back bearish bets.

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