Gold on Friday fell, erasing earlier gains, amid concern that demand might slow from investors and physical buyers after prices rallied to a two—week high.

Gold fell 0.2 per cent to $1,411.74 an ounce, after earlier rising to $1,422.10. Prices are up 1.8 per cent this week, while still a second straight monthly loss.

Silver fell 0.7 per cent to $22.61 an ounce. Still, prices are down 7.1 per cent in May, a fourth straight monthly decline.

Gold demand in China, the world’s biggest consumer after India, may slow in the second half of this year after surging in April when the precious metal tumbled into a bear market, the China Gold Association said.

Earlier today, bullion reached the highest level since May 15, extending yesterday’s 1.5 per cent gain, before declining. Gold has dropped 16 per cent this year as equities rallied and the dollar strengthened amid concern that the U.S.

Federal Reserve may slow the pace of stimulus.

Data yesterday showed the U.S. economy grew at an annualised 2.4 per cent pace in the first quarter, down from a preliminary reading of 2.5 per cent, while jobless claims increased.

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