Gold prices dipped on Friday, with the yellow metal heading for its biggest weekly decline in around 2-1/2 months as the dollar resumed its recent upward trend.
Gold was down 0.18% as at 16.50 GMT, at around $1,328 per ounce. Meanwhile, the US dollar index was up 0.16% amid growing expectations that the Federal Reserve (Fed) will adopt a more hawkish stance in 2018.
Minutes released from the Fed´s latest policy meeting this week showed the central bank was becoming increasingly concerned about rising consumer prices.
“Once again gold failed to break resistance at $1,360/1,370. What we are seeing is the consequence of this, and of the US dollar recovery seen in the last few days,” said ActivTrades analyst Carlo Alberto de Casa.
Think Markets' chief market analyst Naeem Aslam said $1,300 remained a key support level for gold.
“We think some participants were surprised and unprepared, which created the largest weekly loss for this year," added Aslam.
Slump for week
The yellow metal has lost over 2% since last Friday.
Buying was also reported to be relatively subdued on physical markets in China following the Lunar New Year holidays.