Gold prices extended losses into a third session on Friday as the dollar strengthened against the yen on hopes of easing tensions between the United States and North Korea and ahead of US non-farm payroll data later in the day. US President Donald Trump said on Thursday he was prepared to meet North Korean leader Kim Jong Un for the first US-North Korea summit, marking a potentially dramatic breakthrough in nuclear tensions with Pyongyang.
"We are seeing reactions to the Trump-Kim Jong Un's potential for a discussion prompting a risk-on trade and that is putting some pressure on safe haven assets," said a Hong Kong based trader.
Spot gold was down 0.3 percent at $1,318.06 per ounce as of 0737 GMT and was on track to post its third weekly decline. US gold futures for April delivery fell 0.2 percent to $1,319 per ounce. "We are moderately bearish on gold prices, and see the rising yield environment as a headwind," analysts at Societe Generale said in a note.
"That being said, we think US rate hikes are already priced in for 2018, and ETF holdings have been very stable in recent history," analysts said, adding that they see gold prices at $1,275 per ounce in six months. Spot gold may fall more into a range of $1,307-$1,312 per ounce, as it has pierced below a support at $1,317, according to Reuters technical analyst Wang Tao.