Gold prices steadied on Friday but were on target for their biggest weekly fall since May ahead of U.S. employment data later that could have influenced the pace of U.S. interest rate rises.
Gold this week broke below a recent trading range and tumbled through technical levels to its lowest since July as progress on U.S. tax reform fueled optimism about the U.S. economy and boosted the dollar.
The dollar was given an extra boost on Friday after a funding bill eased fears of a U.S. government shutdown this month. A stronger dollar makes bullion more expensive for holders of other currencies and can dampen demand.
Spot gold was down 0.1% at $1,245.66 U.S. an ounce, close to Thursday's low of $1243.71 U.S., the weakest since July 26. It had fallen 2.7% this week, its third consecutive weekly fall and the biggest since early May.
U.S. gold futures were 0.4% lower at $1,247.80 U.S.
Selling was triggered after gold broke below $1,260, the bottom of its trading range since September, and plunged below its 200-day moving average for the first time since July.
Among other precious metals, silver was up 0.4% at $15.78 but down 4% this week.
Platinum was 0.1% lower at $892.20 U.S. an ounce and on track to fall nearly 5% this week, its biggest weekly loss in nine months.
Palladium was up 0.1% at $1,013.75 U.S. an ounce.
