Gold prices nudged lower amid a steady U.S. dollar on Friday, with investors bracing for any impact on global markets from a deepening trade conflict between the United States and China.
The United States was due to begin collecting tariffs on $34 billion in Chinese goods early Friday morning Eastern Time.
U.S. jobs data later in the day was in focus as well. Spot gold had fallen 0.3% to $1,253.11 U.S. an ounce early Friday.
U.S. gold futures for August delivery were 0.4% lower at $1,254.10 U.S. an ounce.
Major currencies, including the dollar, were treading water early on Friday as investor caution prevailed ahead of the deadline and the jobs data. Faltering Chinese markets dented Asian stocks in choppy trade.
Meanwhile, U.S. central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong, minutes of the Federal Reserve's last policy meeting in mid-June released on Thursday showed.
The minutes described a meeting in which the Fed raised interest rates for the second time this year. It also suggested policymakers might soon signal the central bank's rate-hiking cycle was advanced enough that policy was no longer boosting or constraining the economy.
Spot gold may test support at $1,247 U.S. per ounce, a break below which -- some experts say -- could cause a decline to the next support level at $1,237
In other precious metals, silver fell 0.2% to $15.95 U.S. an ounce.
Palladium was 0.3% lower at $945.00 U.S. an ounce and platinum declined 0.6% at $835.50.
