Investing.com - Gold prices slipped on Friday in Asia as the U.S. dollar traded near a one-month high.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.2% at $1,283.25 per ounce by 1:20 AM ET (05:20 GMT).
While an intensifying trade dispute between the U.S. and China have sent most risk assets down this month, the safe-haven gold has not been able to benefit as much as traders hoped as markets have seemingly preferred the U.S. dollar amid the trade war. Gold is now down nearly 5% since touching a 10-month peak in February at $1,346.73.
The U.S. dollar index, which usually moves in directions opposite to gold, was up 0.02% to 97.738. It was near a one-month high on Thursday as an unexpected decline in the number of people filing for unemployment assistance last week helped it maintain momentum.
Gold prices recorded the largest percentage gain in a week on Thursday, but analysts said it might have trouble hitting the psychologically important $1,300 level.
"Gold has found a very good support around $1,270. There was some short covering after the (weak U.S.) data that pushed prices up. However, the upside could be limited as $1,290 is acting as a strong resistance," said Peter Fung, head of dealing at Wing Fung Precious Metals, in a Reuters report.