Gold prices rose on Friday, supported by a weaker dollar amid worries about a possible US government shutdown, but the metal was still on track for its first weekly drop in six weeks. Spot gold was up 0.4 percent at $1,332 an ounce by 0659 GMT. On Thursday, it touched its weakest level since January 12 at $1,323.70, having fallen from recent four-month highs.
Spot gold has declined 0.5 percent so far this week, its worst week since early December. US gold futures were up 0.4 percent at $1,332.
Legislation to stave off an imminent federal government shutdown encountered obstacles in the US Senate late on Thursday, despite the passage of a month-long funding bill by the House of Representatives hours earlier. "The overall run in gold has been overdone ... People have to be careful with further allocations in gold and other asset classes as well for now," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
Spot gold is still targeting $1,311 per ounce, as suggested by a small double-top and a Fibonacci retracement analysis, according to Reuters technical analyst Wang Tao.
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