Mubasher: Gold prices fell on Friday, close to the 10-week low hit in the preceding session, as the US dollar rallied against the Japanese yen (JPY) on hopes of development in the US-China trade dispute and brisk US economic data, Reuters said.

By 9:00 am GMT, spot gold fell 0.27% to 1,288.70 per ounce, after reaching its lowest level since 25 January at $1,280.59 per ounce in the previous session, while US gold futures went down 0.12% to $1,292.70 per ounce.

At 8:59 am GMT, the US dollar index, which tracks the greenback against six major peers, including the yen, ticked down 0.06% to 97.2530.

For the first time since at least last November, gold broke its 100-day moving average around $1,282 per ounce, as strong US data as well as upbeat trade expectations, improved risk appetite.

Markets are now anticipating the official figures pertaining US payrolls due later in the day, looking for more clues on the strength of the economy, Reuters said.

“The market is expecting some positivity in the data today, so if it moves against expectations there might be some sharp fluctuations in the gold price,” Singapore-based Phillip Futures analyst Benjamin Lu was quoted by the new agency.

Risk-taking sentiment could possibly be boosted, if some upturn in the economy’s strength is indicated, a bearish catalyst for the yellow metal, Lu said.

This came along with some indication of a progress in the US-Sino trade negotiations, as US President Donald Trump stated that both sides were close to announce a trade agreement within four weeks.