Gold prices edged lower on Friday against a backdrop of a rising dollar as markets waited to see whether US President Donald Trump succeeds in pushing through healthcare reforms, viewed as a potential bellwether for his ability to impose his economic and political agenda. A rough ride for the healthcare plan could affect Trump's efforts to cut taxes and boost infrastructure, with the potential to drive more investors to gold as a safe haven if stock markets fall, analysts and traders said.
Spot gold was down 0.2 percent at $1,242.31 per ounce by 0651 GMT. On Thursday, it touched its strongest since February 28 at $1,253.12. The yellow metal was on track for its second straight week of gains.
US gold futures were down 0.4 percent at $1,242.20. "If the (healthcare) vote is to pass the reforms, gold could face pressure. But, if it encounters problems, we might chase a previous high at around $1,260," a precious metals trader said. Spot gold is still targeting $1,237 per ounce, as it faces a strong resistance zone of $1,247-$1,254, Reuters technical analyst Wang Tao said.
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