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Gold was hovering above a 2-1/2-week low on Friday as the dollar gave back some of its recent gains, but the metal was still headed for a second straight weekly decline on the prospect of higher US interest rates. Spot gold was little changed at $1,187.90 an ounce by 0646 GMT. It fell to a 2-1/2-week low of $1,180.55 on Thursday but recovered slightly as the dollar and stocks weakened. The metal is still down 1.5 percent on the week.
"The (gold) market looks set to continue to trade in a $1,180-$1,195 range with a break to the downside looking more likely in line with the surging dollar," said Jason Cerisola, a trader at MKS Group. Technical analysts at ScotiaMocatta also said gold's momentum was currently to the downside, with fresh selling expected on a break of $1,171.

Copyright Reuters, 2015

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