Gold prices on Thursday held below a 3-week peak hit the session before, with the dollar recovering from seven-week lows and markets waiting to see if US President Donald Trump can push through a healthcare bill. Spot gold was down 0.1 percent at $1,247.30 per ounce at 0725 GMT. On Wednesday, it touched its strongest since February 28 at $1,251.26.
US gold futures were down 0.1 percent at $1,247.90. "There is a strong technical resistance at $1,250 and that seems to have been felt strongly at this juncture," said OCBC analyst Barnabas Gan. Spot gold may retrace to support at $1,237 per ounce, following its failure to break a resistance zone of $1,247-$1,254, according to Reuters technical analyst Wang Tao. However, Gan pointed to the impact of sustained political issues in Europe and the United States. "This kind of uncertainty does lift gold prices," he said. The immediate focus is on whether Trump can gather enough support in a vote as early as Thursday to pass a bill to roll back Obamacare, a first major test of his legislative ability and whether he can keep his promises to business.