Gold edged higher on Friday as the dollar retreated from this week's 14-year high and some buyers were tempted to take advantage of prices near a 10-month low after six weeks of decline. Volumes were thin as traders prepared for a long weekend. All floor trading for precious and base metals options will be shut on Monday, December 26 for the Christmas holiday.
Bullion has fallen more than $200 an ounce from the peak it hit after Donald Trump's US presidential election victory on November 8, reaching a low last week of $1,122.35, as his win sparked a dollar rally and drove US Treasury yields higher. It is down 14 percent this quarter, paring its gain for the year to 6.7 percent. Gold posted its biggest quarterly increase in 30 years between January and March. Spot gold was up 0.32 pct at $1,132.24 per ounce by 1:50 pm EST (1850 GMT), but still set to finish the week lower for a sixth straight week.
The most-active US gold futures for February delivery settled up $2.90, or 0.26 percent, at $1,133.60 per ounce. "The market is trying to base right now," said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago. "Unless there are geopolitical concerns, the path of least resistance is to the downside." The dollar eased against a basket of currencies, off highs hit after this month's Federal Reserve policy meeting.