Gold prices jumped on Friday, January 19, buoyed by a weaker dollar amid worries about a possible U.S. government shutdown, but the metal was still on track for its first weekly drop in six weeks.
Spot gold was up 0.4 percent at $1,332 an ounce by 0659 GMT. On Thursday, it touched its weakest level since Jan. 12 at $1,323.70, having fallen from recent four-month highs.
Spot gold has declined 0.5 percent so far this week, its worst week since early December. U.S. gold futures were up 0.4 percent at $1,332.
The U.S. dollar fell amid worries over a possible U.S. government shutdown. The dollar index was down 0.1 percent at 90.406 on Friday.
“The fundamentals remain the same with the large trading range remaining intact at $1,200 to $1,400, with no major change in global political tensions or rate hike outlook,” To said.
Spot gold is still targeting $1,311 per ounce, as suggested by a small double-top and a Fibonacci retracement analysis, according to Reuters technical analyst Wang Tao.
The recent pull-back from over four-month highs has likely tested speculative longs and should be viewed as a healthy retracement before the metal makes a further test toward $1,350, MKS PAMP Group trader Sam Laughlin said.
Meanwhile, holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 1.42 percent to 840.76 tonnes on Thursday from Wednesday.
Among other precious metals, silver advanced 0.5 percent to $17.01 per ounce. Platinum climbed 0.1 percent to $1,001.74, while palladium gained 0.8 percent to $1,107.
