Gold is at a two-week minimum on growing recovery hopes, but concerns about friction between the US and China limited the decline, Reuters reported.

Spot gold was down 0.3% at $1,705.91 per ounce by 1105 GMT. US gold futures fell 0.5% to $1,697.40. 

“It’s very important for gold prices to stay above $1,700. Otherwise, if the price correction continues, speculative investors are likely to leave this boat and increase pressure on prices,” said Commerzbank analyst Eugen Weinberg. 

“One can mention the geopolitical tensions are contributing somewhat and supporting gold prices currently. But, until now this situation has failed to ignite fears on the equity market.”

Despite the decline, the outlook for gold prices, which is seen as a safe asset in times of political and economic uncertainty, remains favorable, analysts say.

Palladium rose 0.1% to $ 1.957.88 an ounce, silver - 0.06% to $ 17.11 an ounce. The price of platinum increased by 0.42% to $ 833.15.