Gold futures on the COMEX division of the New York Mercantile Exchange continued to rebound on Friday as the U.S. dollar lost steam and weakened against other major currencies, leaving the precious metal open for a small advance after two weeks of losses.

The most active gold contract for June delivery rose 17 dollars, or 1.08 percent, to settle at 1,591.9 dollars per ounce.

The gold price will likely face some resistance if it tries to go beyond 1,630 dollars an ounce, market analysts say.

Against a backdrop of escalating European worries, the dollar extended its recent strength in early trading, but later lost the momentum. The dollar index, which measures the greenback against a basket of six currencies, declined to 81.278 on Friday from 81.454 late Thursday.

A stronger dollar can pressure dollar-priced commodities including metals, as it makes them more expensive to holders of other currencies.

Gold posted its largest one-day gain in more than three months in the previous session.

Silver for July delivery sharply rose 69.5 cents, or 2.48 percent, to settle at 28.715 dollars per ounce.