Gold prices inched higher on Friday after hitting a six-month trough in the previous session, as the US dollar pulled back from a 11-month peak on profit-booking. Spot gold was up 0.2 percent at $1,269.46 an ounce, as of 0644 GMT. In the prior session, bullion touched $1,260.84, its lowest since December 19, 2017.
The yellow metal was, however, headed for a 0.7 percent decline for the week. US gold futures for August delivery were 0.1 percent higher at $1,271.50 per ounce. Gold has rebounded a little bit from the lower side due to the weakness in the dollar, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies. The trade war is affecting gold for the time-being. Unless the dollar weakens, do not expect gold to move too high, Leung added. Spot gold still targets $1,258 per ounce, as suggested by its wave pattern and a projection analysis, said Reuters technicals analyst Wang Tao. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.5 percent to 824.63 tonnes on Thursday.