Gold prices reversed course and turned lower on Thursday, after earlier touching a two-week high, as the dollar edged up. Spot gold was down about 0.1 percent at $1,265.02 an ounce as of 0816 GMT, after earlier hitting its best since December 6 at $1,268.26.
US gold futures fell 0.1 percent at $1,268.30 an ounce. "The current weakness in the gold price is mainly due to the strength of the dollar," said Naeem Aslam, chief market analyst at Think Markets UK.
Earlier in the session, gold prices hit a two-week high, helped by seasonal demand and steady closes on the technical charts, a Hong Kong-based trader said. The 200-day moving average around $1,269.50 is currently weighing upon any attempts higher (for gold), MKS PAMP trader Sam Laughlin said in a note.
A rise in US bond yields from optimism after lawmakers in the United States approved the biggest overhaul of the country's tax code in 30 years, also offered support to the greenback. Rising bond yields tend to boost the dollar and weigh on the appeal of non-interest bearing gold. "We think that the pullback in the equity market could bring some shine for the yellow metal," Aslam said.
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