Investing.com -- One day after surging more than $25 an ounce, gold futures were relatively flat on Friday amid a stronger dollar and ongoing concerns of a Greek default on its sovereign debt.
On the Comex division of the New York Mercantile Exchange, gold for August delivery lost 0.10 or 0.01% to $1,201.90 a troy ounce.
Gold futures traded in a tight range of 1,198.10 and 1,203.90, ending the week up more than 1.7%. Gold finished with its best five-day period since the week ending on May 15 when it surged more than 3%. The precious metal then fell by more than 1.2% for three consecutive weeks before rallying to close last week up 0.95%.
Gold likely gained support at 1,184.00, the low from June 1 and was met with resistance at 1,208.90, the high from May 25.
One day after high-level talks in Luxembourg broke-off without a deal in the five-month long Greek debt negotiations, the European Central Bank reportedly increased the cap on its Emergency Liquidity Assistance fund for banks in Greece by €3.3 billion. It came days after depositors took out a reported €2.0 billion from Greek banks in a 72-hour period, underscoring their lack of trust in the teetering economy.
Greece is running out of time before it owes the International Monetary Fund a bundled loan payment of €1.5 billion on June 30. At the same time, the remaining €7.2 billion of a €240 billion stimulus package from its international creditors is set to expire at the month.
On Monday, all 27 members of the European Union are scheduled to be present at an emergency summit in what could be Greece's final opportunity to avoid a default. During an appearance in St. Petersburg, Greece prime minister Alexis Tsipras indicated that he will be "working for success" at Monday's summit, while adding that "those who invest in crisis and terror scenarios will be proven wrong."
Meanwhile, a spokesperson for Germany chancellor Angela Merkel said it isn't too late for Greece to complete a deal as long as it agrees to the reforms required.
Gold is considered a safe haven for investors in periods of severe economic instability. It could also be an alternative for European investors concerned with the value of equities and government bonds if Greece leaves the euro zone.
Elsewhere, Federal Reserve Bank of San Francisco president John Williams reiterated on Friday that an interest rate hike could be appropriate in 2015, while adding that waiting too long for lift-off poses added risk. The remarks were the first public comments by a Fed governor since the Federal Open Market Committee opted not to issue any definitive wording on the timing of a rate hike on Wednesday.
The U.S. Dollar Index, which measures the strength of the dollar versus a basket of six other major currencies, reached a session-high of 94.70 in U.S. morning trading before falling slightly back to 94.39, up 0.20%. Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.
Silver for July delivery fell 0.055 or 0.34% to 16.098 an ounce.
Copper for July delivery plunged 0.040 or 1.52% to 2.566.