LONDON: Gold held near six-week highs on Friday though its recent rally appeared to falter as investors awaited US gross domestic product (GDP) data for more clues about the pace of US monetary policy tightening.
Spot gold was flat at $1,258.61 an ounce at 1152 GMT after touching $1,264.99, the highest since June 15, on Thursday. It was on track to rise for a third week in a row.
US gold futures for August delivery were 0.2 per cent lower at $1,258 an ounce.
The dollar was slightly weaker and US bond yields slightly higher, while share prices fell.
The biggest risk to gold prices was a stronger dollar, Julius Baer analyst Carsten Menke said.
Gold has risen by about $55 since early July thanks to dollar weakness and short-covering, he said, but “the rally was on a rather weak footing because at the same time you had the physical market selling”.
On the technical side, fibonacci resistance was firm at $1,261.30 and support at $1,250.50, analysts at ScotiaMocatta said in a note.
MKS PAMP trader Tim Brown said: “Gold looks well supported ahead of the 100-day moving average at $1,249, and a consolidation above $1,260 could support a move higher.”
Chinese data on Friday showed consumption of gold in the country rose by 10 per cent in the first half of the year while production fell, leading to higher imports.
However, the global market had a surplus of 138 tonnes in the first half as demand from physically-backed exchange traded funds tumbled, GFMS analysts at Thomson Reuters said this week.
In other precious metals, silver was unchanged at $16.53 an ounce, on track for a third weekly gain.
Platinum was 0.4 per cent higher at $926 an ounce but set for its first weekly decline in three. Palladium was up 0.4 per cent at $876 after touching a one-month high on Thursday, and has gained 3.6 per cent this week.
