old retreated slightly from the key $1,900 level on Friday as a potential Russia-U.S. meeting cooled some nerves about an escalation in the Ukraine conflict, but the recent rally set bullion up for a third straight weekly gain.

Spot gold fell 0.5% to $1,887.71 per ounce by 1042 GMT, after earlier touching its highest since June 2021 at $1,902.22 en route to post a weekly gain of about 1.5%.

U.S. gold futures  fell 0.7% to $1,889.20.

The U.S.-Russia meeting slated for next week is likely to keep a lid on gold, although there could be some selling interest going into the weekend, especially with a U.S. holiday on Monday, said Michael Hewson, chief market analyst at CMC Markets UK.

"The outlook for gold does look a lot more positive, but it's going to be really difficult to get back above those June peaks. We might find it trading between $1,910 and roundabout $1,870 over the next few days," Hewson added.

Helping global equities mark tentative gains, U.S. Secretary of State Antony Blinken agreed to a meeting with Russia's foreign minister Sergei Lavrov, boosting hopes of an end to the standoff. 

However, "The need for safety among market participants still appears considerable against the backdrop of the Ukraine crisis, meaning that gold remains in demand as a safe haven," Commerzbank analysts said in a note.

Finance leaders from the Group of 20 major economies were set on Friday to agree that rising inflation and geopolitical risks could threaten a fragile global recovery, as the Ukraine crisis and the pandemic cloud the outlook 

Spot silverinched 0.3% to $23.73, and palladium fell 2.8% to $2,300.68, with silver set for a weekly gain and palladium inching lower for the week.

Platinum was down 0.5% to $1,083.63. It surged about 5.5% this week, its highest weekly gain since mid January.

(Reporting by Seher Dareen in Bengaluru; Editing by Amy Caren Daniel) ((Seher.Dareen@thomsonreuters.com; If within U.S. +1 646 223 8780;))