• Spot gold was down 0.2 percent at $1,219.28 an ounce at 0127 GMT. In the previous session, it fell to its weakest since early July last year at $1,211.08 an ounce.
Bullion was headed for a 2 percent decline for the week.
U.S. gold futures for August delivery were down 0.4 percent at $1,219.10 an ounce.
• The dollar index, which measures the greenback against a basket of six major currencies, was 0.1 percent higher at 95.129. It had dropped from a one-year high of 95.652 on Thursday after U.S. President Donald Trump expressed concern about the currency's strength and the Federal Reserve's interest rate increases.
• Trump on Thursday criticized Federal Reserve policy even though most economists believe the highest inflation in seven years and lowest unemployment in 40years justify recent interest rate rises and a strong U.S. dollar.
• Canada on Thursday played down Trump's suggestion that he might seek separate trade deals with NAFTA partners Canada and Mexico, noting he has made similar comments before.
• The European Union's trade commissioner said on Thursday she hopes an EU mission to Washington will ease a transatlantic trade dispute but the bloc is preparing a list of U.S. imports to hit if the United States imposes tariffs on EU cars.
• European Union countries will suffer long-term damage equivalent to about 1.5 percent of annual economic output if Britain leaves the bloc without a free trade deal next year, the International Monetary Fund said on Thursday.
• The financial leaders of the world's 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other's goods.
• Gold markets fell against the US dollar during the trading session on Thursday as we have broken towards the $1215 level. I believe that there is a ton of support just below, but obviously we have a lot of bearish pressure to get rid of until that shows itself.
Gold markets have fallen again during the trading session, losing 0.8% by the time I got to this article. I think that the market has a major amount of support near the $1200 level though, and it’s likely that a certain amount of buying opportunities will present themselves below. In the meantime though, it looks as if short-term rallies will be selling opportunities, with the $1230 level looking particularly bearish. If we can break above that level, then I think more sellers come in between the $1240 level in the $1250 level.
Participants continue to be very skittish, with the strengthening US dollar it makes sense that Gold would fall. I do believe that it is only a matter of time before buyers come back, but I would like to see a daily, if not weekly candle confirming the turnaround and the value hunters jumping in. I suspect that it’s going to be difficult to break above the $1250 level, as it is a very negative area, but if we did then I think the market would probably go looking towards the $1300 level, although I give that about a 10% chance in the short term. I think we will probably need to build a bit of a base at these lower levels to turn things around. If we did break down below the $1200 level, the market is likely to go much lower, perhaps reaching towards the $1000 level after that
Reference: Reuters, FX Street,DailyFX
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