Investing.com - Gold prices slipped on Friday in Asia as traders awaited more trade news.
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 near a one-month high on Thursday but retreated as weak domestic data increased expectations for an interest-rate cut this year.
Sales of new U.S. homes fell from near an 11.5 year high in April as prices rebounded and manufacturing activity hit its lowest level in almost a decade in May, data showed.
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.