Spot gold XAU= 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 Dec. 19, 2017.
The yellow metal was, however, headed for a 0.7 percent decline for the week.
U.S. gold futures GCcv1 for August delivery were 0.1percent 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 dollar pulled back from an 11-month peak against a basket of major currencies on Friday, as investors took profits after the currency's earlier rally, while sterling rebounded from a seven-month low after a slightly hawkish tilt from the Bank of England surprised the market.
· Asian shares stumbled to their lowest in six months on Friday, hurt by signs U.S. trade battles with China and many other countries are starting to chip away at corporate profits, while oil prices were choppy before an OPEC meeting to discuss raising output.
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 byits wave pattern and a projection analysis, said Reuters technical analyst Wang Tao. TECH/C
· Holdings of SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, dropped 0.5 percent to 824.63 tones on Thursday. GOL/ETF
· Meanwhile, the ongoing trade war between the world's two largest economies has now claimed another victim - Germany's auto sector.
· Auto catalysts platinum XPT= and palladium XPD= were little changed at $861.80 and $952 per ounce, but were headed for weekly declines of over 3 percent.
Earlier in the session, palladium slipped to a seven-week low of $947.15 an ounce.
Silver XAG= was up 0.5 percent at $16.39 an ounce and was on course for a 0.6 percent decline this week. It fell to its lowest since May 2 at $16.16 in the previous session.
· GOLD Weekly View: Bearish Trend below 89 EMA, 89 EMA is good to identify Long Term Trend. Last week, Gold 0.09% already break down the 89 EMA. This Week, Gold 0.09% made lower low and confirmed Bearish Trend. From Supply - Demand view: Gold 0.09% doesnt' have good demand zone untill 1133. From Harmonic Pattern View: Gold 0.09% may complete the AB=CD untill 1113. Therefore, The only Strategy we are going to apply is: Short the pull back Use Inside Bar to Catch momentum Use Structure Break down + Pull
· No change from our point of view, on daily chart we expect a technical rebound (see chart below) and we are looking for a reversal pattern on intraday chart. That said, if our harmonic structure will work properly, it could be a clear signal. In conclusion, wait for the first bullish impulse and try to take a long position on the pullback.
· Gold prices will look to June’s US PMI data for direction. The yellow metal paused to digest losses amid a lull in negative news-flow yesterday, as expected. If the PMI roundup echoes the broad tendency of US data to top consensus forecasts in recent months, the selloff may resume as Fed rate hike speculation finds fresh fodder.
GOLD TECHNICAL ANALYSIS
Gold prices continue to test support in the 1260.80-66.44 area. A daily close below it opens the door for a test of the December 2017 low at 1236.66. Alternatively, a turn back above support-turned-resistance marked by the May 21 low at 1282.27 exposes the $1300/oz figure anew.
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