Gold was on track for its third straight weekly gain on Friday, buoyed by short-covering and a pause in the dollar rally, while traders also eyed central bank activity for cues. The metal traded between $1,175 an ounce and $1,205 this week, largely steady after a dip to four-and-a-half-year lows earlier in the month.
"While the current macro environment of low inflation and a strong dollar has provided a headwind for bullion, a convincing break above the $1,200 level may invite buying from momentum investors," said HSBC analyst James Steel. Spot gold ticked up 0.2 percent to $1,195.60 an ounce by 0724 GMT, after gaining nearly 1 percent in the previous session. The metal is so far up 0.6 percent for the week. Gold had fallen to a 4-1/2-year low of $1,131.85 earlier this month on a strong dollar.
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