The domestic market precious metals market is expected to gain after the International Monetary Fund meeting concludes on the weekend.

The five-year deal between IMF and central banks that limits central bank gold sales to 400 tonnes a year is being reviewed in Dubai on the weekend to be implemented beginning 2004.

The market ended lower amid narrow fluctuations in the current week ended Friday following the fluctuating international prices. Standard gold ended the week at Rs 5,695 per 10 gram, a loss of Rs 15 from previous Friday's Rs 5,710.

Similarly, pure gold (99.9) also closed at Rs 5,735 from previous week's Rs 5,740. Silver (99.9 purity) also declined from Rs 8,560 to Friday's close of Rs 8,475 per kilogram, a loss of Rs 85.

Meanwhile, gold ticked quietly higher in Europe on Friday morning led by currency moves as several players watched out for potential renewal of the gold sales pact at the IMF Dubai meeting.

Spot gold was trading at $376.90/377.60 an ounce at 1024 GMT, marginally up from New York's $376.35/7.05 late on Thursday. London bullion dealers fixed Friday's morning spot reference price at $376.30.

Silver eased down to $5.20/5.22 an ounce from $5.22/5.24 in New York late on Thursday, with the market trying to regain its footing after being knocked back heavily from a run up towards recent 3-1/2 year highs above $5.30.

Platinum also traded quietly at $698.00/703.00 an ounce from 699.00/703.00 previously, while sister metal palladium was firmer at $216.00/221.00 from $211.00/216.00.

Currency fundamentals added support as the euro stabilised at the upper end of recent ranges against the dollar, making dollar-based gold a better buy for European investors.

Speculation that the European central banks may use this weekend's IMF meeting to agree on renewal of the Central Bank Gold Sales Agreement has kept the bullion market alert and was one of the factors that helped drive prices towards highs not seen in 1996 last week.

The original agreement, known as the Washington accord, was prompted by concerns that disorderly central bank sales were creating massive uncertainty in the bullion market and were contributing to a depressed gold price.

The five-year deal, that limits central bank gold sales to 400 tonnes a year, was struck in Washington in September 1999 on the sidelines of the autumn IMF meeting and runs out this time next year.

European Central Bank governing council member Yves Mersch said earlier on Friday that the question of a new central bank gold deal would not to come up until start 2004.

But many analysts have speculated that a renewal could happen soon. "We're looking at a typical Friday at the moment but some people are obviously holding back bit with the IMF meeting," the trader said.