Gold prices rose on Friday, supported by a weaker American dollar amid worries about a possible U.S. government shutdown, but the shiny yellow metal was still on track for its first weekly drop in six weeks.
Spot gold was up 0.4% at $1,332 U.S. an ounce early Friday morning. On Thursday, gold had touched its weakest level since Jan. 12 at $1,323.70 U.S., having fallen from recent four-month highs.
Spot gold has declined 0.5% so far this week, its worst week since early December. U.S. gold futures were up 0.4% at $1,332.
The U.S. dollar fell amid worries over a possible U.S. government shutdown. The dollar index was down 0.1% at 90.406 on Friday.
Legislation to stave off an imminent federal government shutdown encountered obstacles in the U.S. Senate late on Thursday, despite the passage of a month-long funding bill by the House of Representatives hours earlier.
The dollar has fallen since 2017 largely on expectations central banks besides the Federal Reserve are seeking to end their policy of ultra low, even negative, rates that they adopted to combat the 2008 global financial crisis and the recession that followed.
