Gold slipped on Thursday, hitting its lowest in nearly a week, as the dollar edged higher from three-year lows on stronger-than-expected US economic data. Spot gold was down 0.1 percent at $1,326.11 per ounce as of 0726 GMT. Earlier in the session, it touched its lowest since Jan. 12 at $1,323.70.
In the previous session, it fell 0.8 percent, posting its worst one-day percentage decline since Dec. 7. US gold futures for February delivery slipped 0.9 percent to $1,326.60 per ounce.
"The metal looks well supported at $1,325 (an ounce) and below that we can expect plenty of buying interest ahead of $1,300," said MKS PAMP Group trader Tim Brown in a note. "On the upside, first resistance should be at the four month high of $1,344 and the $1,350 level after that."
Analysts said a correction in digital currencies could support gold. "Brokers in Europe report investors have increasingly been asking about switching from cryptocurrencies into gold," ANZ analysts said in a research note.
Spot gold is expected to fall to $1,311 per ounce, as it has broken a support at $1,329, according to Reuters technical analyst Wang Tao.
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