Gold prices retreated on Friday set for a weekly loss as the dollar strengthened, but the metal still traded above the critical $1200 support level.
The precious metal hit a bottom of $1220.71 an ounce, while currently trading around $1222.50 from the opening at $1230.43.
The dollar strengthened with the release of upbeat industrial production, PPI, and unemployment claims data this week, ahead of consumer prices figures due later in the day.
The green currency surged to 96.97 from the session’s opening at 96.73, poised to its first weekly gain in four weeks.
Asian shares eased from three-week highs on Friday, but managed to end the week on a gain as the rise in oil prices improved the sentiment.
Crude oil inched down to $32.75 a barrel, but has gained 4.5 percent this week to give an uplift to global equities.
Physical demand from Asia weakened this week, with worries from China after the release of downbeat data this week.
However, gold is still finding support near the psychological level of $1200, which may help it to rise again.
So far, gold has lost 0.95 percent this week, heading for its first weekly decline in five weeks.
