Gold falls

Reuters

Singapore

Gold fell on Friday as investors cashed in profits following a 1.2 percent gain in the previous session on improving demand for the metal on signs U.S. and European central banks will continue loose monetary policies in the medium term.

"We have seen little selling coming into the market which is understandable given gold is about $20 higher from the lows traded in Asia on Thursday," MKS Group trader Jason Cerisola said, adding that gold has very good support at $1,310 level.

Spot gold edged lower 0.5 percent at $1,324.30 an ounce at 0344 GMT.

Bullion is set for a 0.7 percent decline for the week. U.S. gold slipped 0.5 percent at $1,324.80 an ounce.

The U.S. Federal Reserve will wait until the fourth quarter before raising interest rates, likely in December after the presidential election, according to a Reuters poll which once again showed subdued inflation expectations.