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By Bloomberg

Gold traded near the highest level in more than three weeks after the Federal Reserve said it will take a gradual approach to raising interest rates and a meeting of euro-area finance officials over Greece dissolved in acrimony.

Bullion for immediate delivery fell 0.2 percent to $1,199.69 an ounce by 12:45 p.m. in Singapore, according to Bloomberg generic pricing. The metal reached $1,205.80 on Thursday, the highest since May 26, and is poised for a 1.5 percent gain this week for a second weekly advance.

Gold is up 1.3 percent this year after swinging between year-to-date gains and losses more than 10 times as investors assessed when the U.S. would increase rates. The Fed on Wednesday signaled it will raise rates gradually as officials look for more decisive evidence of growth. Greece lurched closer to an exit from the euro as finance ministers failed to reach a deal over aid on Thursday, forcing leaders to call for an emergency summit. That may boost bullion’s appeal as a haven.

“A very dovish display by the Federal Open Market Committee appeared to be the main catalyst for gold,” Howie Lee, an analyst at Phillip Futures Pte. in Singapore, said in a note. “Gold also seems to be stirred by the unrest in Greece. The safe-haven property of gold may shine through.”

The dollar’s decline to a one-month low this week also boosted demand for bullion as an alternative asset. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, is headed for a second week of losses.

Gold for August delivery fell 0.2 percent to $1,199.60 an ounce on the Comex after rising 2.1 percent on Thursday. Bullion of 99.99 percent purity gained as much as 1 percent to 239.80 yuan a gram ($1,201.22 an ounce) on the Shanghai Gold Exchange, the highest since May 26, and traded at 239.34 yuan.

Silver for immediate delivery slid 0.1 percent to $16.1595 an ounce, paring its first weekly increase in a month. Platinum was little changed at $1,082.65 an ounce and headed for a fifth week of losses, the longest run since November. The metal reached a six-year low on June 17.

Palladium lost 0.2 percent to $720.60 an ounce, dropping for 15 out of the past 16 days and extending a bear market it tumbled into Wednesday.