Gold remained volatile in Asian trade on Friday and was set for its first weekly decline in four, with investors continuing to mull over the economic outlook after Republican Donald Trump won this week's US presidential election. Spot gold was up 0.2 percent at $1,262.20 an ounce at 0722 GMT. The metal fell to a more than three-week low at $1,250.70 before rising as high as $1,265.40 earlier in the session. It has declined over 3 percent so far this week.
US gold futures were down 0.4 percent at $1,261.60 per ounce after falling as much as 1.3 percent to a four-week low of $1,250.40 earlier. "Gold stayed on the defensive, beset by enhanced growth expectations as Trump's team reassured financial markets and investors took on the view that the pro-growth policies of a new administration were good for paper assets," said James Steel, chief metals analyst for HSBC Securities in New York. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.4 percent to 941.68 tonnes on Thursday from 955.03 tonnes on Wednesday. Spot gold may bounce moderately to resistance at $1,271 per ounce before falling, as it has found a support at $1,255, according to Reuters technical analyst Wang Tao.
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