Prices for the yellow metal retreated slightly from lows amid growing optimism about the bailout program for Cyprus. While the ECB and others are closely monitoring the developments in the troubled country, the price of gold fell to around 1603, which is the bottom of the last three sessions. After that, prices rebounded in early U.S. session after the euro rally on news that the ruling party of Cyprus was confident that in the coming hours will be agreed with the EU on the issue of providing financial assistance to the country.

Gold prices are close to the second weekly increase due to the demand for safe assets in the midst of a financial crisis in Cyprus. EU told to Cyprus until Monday to find several billion euros to get international help. Otherwise, the country is threatened by the collapse of the financial system and leaving the euro.

Stocks of the world's largest gold-exchange-traded fund (ETF) SPDR Gold Trust on Thursday fell by 0.902 tonnes to 1.221,26 tons - the lowest level since July 2011.

April futures price of gold today fell to 1,602.6 dollars per ounce, and then recovered slightly above $ 1,611 an ounce on the New York Mercantile Exchange.