Spot gold was up 0.2 percent at $1,224.40 an ounce as of 0430 GMT. The precious metal was, however, on track for its third straight weekly decline.
Gold prices edged higher on Friday as the dollar slipped against major peers ahead of US economic growth data that could shed light on the pace of rate hikes in the world’s top economy.
Spot gold was up 0.2 percent at $1,224.40 an ounce as of 0430 GMT. The precious metal was, however, on track for its third straight weekly decline.
US gold futures were 0.2 percent lower at $1,223.80 an ounce.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 94.683. Against the yen, the dollar was down 0.2 percent at 110.97.
A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.
Meanwhile, the Chinese yuan stayed near a 13-month low versus the dollar, as simmering Sino-US trade concerns weighed on economic outlook and investor sentiment.
A relatively strong greenback versus the yuan is limiting upside for gold, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
“There are concerns about rising US interest rates and the (US-China) trade war, which are also affecting gold for the time being,” Leung added.
Meanwhile, a strong reading in second-quarter US economic growth could back the case for faster rate hikes.
Higher US rates tend to boost the dollar and push bond yields up, denting the bullion’s non-interest bearing appeal.
“Though we would argue that markets have relatively priced in on greenback vigour and current-term economic data, the precious metal looks poised to erode further as geopolitical uncertainties from the EU and US rescind gently,” +, a commodities analyst at Singapore-based broker Phillip Futures, said in a note.
With trade tensions escalating between Washington and China, the US Senate on Thursday quietly passed a legislation that would lower trade barriers on hundreds of items made in China.
The United States also signalled on Thursday that it is set to push ahead on trade talks with Canada and Mexico after agreeing to suspend hostilities over tariffs with Europe in a fragile deal that may clear the way for renewed pressure on China.
Spot gold is expected to fall into a range of $1,206-$1,214 per ounce, said Reuters technical analyst Wang Tao.
Among other precious metals, silver rose 0.3 percent at $15.41 an ounce but was headed for its seventh weekly decline. Palladium was up 0.2 percent at $928.80 an ounce, while platinum was nearly unchanged at $822.70 an ounce.
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