SAN FRANCISCO (MarketWatch) — Gold futures closed 1.9% higher Friday as Federal Reserve Chairman Ben Bernanke put off any discussion of economic easing measures until a policy meeting in late September while offering a more optimistic view of the U.S. economy.

Gold for December delivery GC1Z gained $34.10 to settle at $1,797.30 an ounce on the Comex division of the New York Mercantile Exchange.

For the week, gold declined 3%. The week included a two-day correction that at its peak shaved nearly $200 off the price of an ounce of gold, which hit a record on Monday a few bucks shy of the $1,900 mark. Read about why the increase in volatility was good for gold.

Gold had traded as high as $1,809.70 an ounce shortly before the session’s settlement. In electronic trading on Globex late Friday immediately after the close of the regular session, prices rose another $12.50.

“Gold’s lows this week were less than 7% off its all-time highs, not much of a drop,” said Steven Evanson, chief executive officer at Evanson Asset Management.

The Dow Jones Industrial Average DJIA, +1.19% is trading over 12% off its recent highs and over 20% below its late 2007 highs, he said, so “if gold were a stock, its 7% decline this week [from the all-time highs to the week’s lows] would hardly be noticed.”

Lack of stimulus

In his much-anticipated speech before a gathering of central bankers in Jackson Hole, Wyo., Bernanke said discussion about easing options available to the central bank will be held at the Federal Open Market Committee meeting late next month.

Bernanke announced the Fed had decided to expand its September meeting to two days, Sept. 20 and 21, to weigh the pros and cons of further easing. Read the full story on Bernanke’s speech.

The gold markets showed they were “a little disappointed” from the lack of stimulus, but the magnitude of recent losses offered some support, said Frank Lesh, broker and analyst at FuturePath Trading in Chicago.

Gold is likely to trade sideways in the next few sessions, he added. “We have put a lot of value here too fast, and when gains come too fast they don’t hold,” he said.

Chinese banks' balance-sheet fears

It’s difficult to judge how recent stock market weakness, debt-ceiling negotiations, and the European debt crisis have affected the U.S. economy, Bernanke said. But he also offered a slightly more positive take on the economy.

The Fed expects “a moderate recovery” to continue and strengthen over time, Bernanke said.

Friday’s gains carried over from the previous session, soothing some of the sting of the earlier correction.

Gold futures added $5.90, or 0.3%, to finish at $1,763.20 an ounce Thursday on Comex. See report on Thursday’s gold moves.

Friday gains also came as the dollar weakened, with the dollar index DXY, -0.06% falling to 73.774 compared to 74.262 late Thursday.

Dollar-denominated gold tends to rise as the U.S. currency falls. See currencies.

The broader suite of metals on Friday ended higher.

September silver SI1U rose 21 cents, or 0.5%, to close at $40.95 an ounce. On the week, silver declined 3.5%.

September copper HG1U added 2 cents, or 0.5%, to $4.10 a pound. Copper has gained 2.9% so far this week.

Palladium for the same month PA1U rose $5.20, or 0.7%, to $756.35 an ounce, while the October contract PL1V of sister metal platinum gained $4.50, or 0.3%, to $1,826.90 an ounce.

Platinum and palladium diverged in weekly results, however. Palladium has risen 1% this week, while platinum has lost 2.6%.