Gold prices weakened after touching a more than two-week high on Thursday, weighed down by profit-taking amid political turmoil in the United States. The yellow metal rose about 2 percent on Wednesday in its biggest one-day percentage gain since June last year, as pressure on US President Donald Trump deepened following reports that he tried to interfere with a federal investigation.
That came after a turbulent week when Trump fired FBI Director James Comey and discussed sensitive national security information with Russia's foreign minister, causing investors to question whether Trump can push through tax cuts and deregulation. "We are seeing some squaring off probably from Asian traders and perhaps just a bit correction from the moves overnight," said Jeffrey Halley, senior market analyst at OANDA.
Spot gold was down 0.2 percent at $1,258.02 per ounce by 0805 GMT after earlier touching its strongest since May 1 at $1,263.02. The yellow metal settled higher in the five previous sessions. US gold futures were nearly flat at $1,258.40 an ounce. Spot gold may retrace moderately to a support at $1,252 per ounce, before retesting a resistance at $1,264, according to Reuters technical analyst Wang Tao.
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