Gold Retreats from 7-Week High

Gold futures on the COMEX Division of the New York Mercantile Exchange on Friday declined for the first time in two weeks, as some investors opted to liquidate their positions after gold prices registered the longest rally in six months.

The most active gold contract for April delivery dropped 6.5 dollar per ounce, or 0.46 percent, to settle at 1,409.3 dollars.

Mike Daley, a senior gold analyst with PFGBEST, said the market is breathing a sigh of relief as it has been reported that Saudi Arabia has raised its oil output about eight percent to around 9 billion barrels per day to offset the loss of Libyan exports.

Violence in Libya has threatened the supply of crude oil and has ultimately been fueling oil prices, which is a "bullish" factor for gold market as investors would buy precious metals as hedge against inflation.

Mike added that in the long run, however, the precious metal would continue to be the "safe haven" choice of global investors amid political tensions in the Middle East and Africa. Besides, the inflationary concern would also offer supports.

Before Friday, gold prices have hiked for nine straight trading days, the longest rally since 2010's August, and refreshed the 7- week record on Thursday.

Silver for May delivery dropped 25.7 cents, or 0.8 percent, to 32.923 dollars an ounce. Meanwhile, April platinum delivery gained 16.6 dollars, or 0.9 percent, to 1,803.4 dollars an ounce.