Gold for June delivery, the most active contract, rose $10.80, or 0.9%, to settle at $1,153.70 an ounce on Comex. The contract had earlier hit an intraday low of $1,135.20 an ounce.
Most metals chased gold higher, but palladium posted losses. Palladium for June delivery lost $1.90, or 0.3%, to $563.20 an ounce.
On the week, gold posted a 1.5% increase despite steep losses on April 16 and Monday. Gold prices lost 2% last Friday on a selloff triggered by news U.S. regulators had charged Goldman Sachs Group Inc. with fraud.
"There's been some ups and downs but gold is on a very nice uptrend," said Richard Ross, a technical analyst with Auerbach Grayson in New York. "This ability to dust itself off is very bullish."
Gold often wears two hats -- as a risky asset as well as a defensive one -- and Friday it was benefitting from both, Ross said.
"Gold is taking on a different group of followers," those who are not attracted to gold just on things are dire, Ross said. "Now gold is also seen as a sign of economic sensitivity ... people own it for a lot of different reasons."
Gold prices seesawed early but took a turn for the worse after the U.S. Commerce Department reported demand for durable goods had dropped 1.3% in March after a 1.1% rise in February.
It reversed course again, however, after a report showed U.S. sales of new homes surged in March. The housing report also lifted stocks and other commodities such as oil. Read more about new-home sales.
But as demand from investors was enough for prices to claw back, physical buyers were seen as sidelined.
"We're not seeing physical buying," said Stephen Platt, an analyst with Archer Financial Services in Chicago. "The buying we're seeing is short covering, rather than some real fresh interest in gold."
Meanwhile, silver for May delivery, the most active contract, gained 18 cents, or 1%, to $18.19 an ounce on Comex. Copper for July delivery rose 2 cents, or 0.7%, to $3.5305 a pound.
Platinum, which on Thursday hit its highest level since July 2008, gave back gains Friday. Platinum for July delivery ended 2.50 lower, or 0.1%, to $1,741.70 an ounce on Comex.
Palladium for June delivery retreated $1.90, or 0.3%, to $563.20 an ounce.
Earlier, the euro hit a one-year low against the dollar but came off the session lows as Greece formally requested aid from the European Union and the International Monetary Fund.
Prime Minister George Papandreou asked to tap a 45 billion euro ($59.9 billion) package after soaring borrowing costs were seen as making it nearly impossible for the country to meet its funding needs on the open market.
The news helped spur a relief rally in the euro, and European stocks were clawing back ground after sliding Thursday when Greece's debt rating was cut by Moody's. Read more on Greece request for aid
The dollar index (INDEX:DXY) , which measures the greenback against a basket of six major currencies, traded lower at 81.35.
Gold ended lower Thursday on the back of a stronger dollar and sidelined physical buyers, but investment demand was strong enough to trim some of the losses toward the end of the session.
source: market watch
