Bengaluru — A weaker dollar helped gold prices steady on Friday, after bullion fell more than 1% in the previous session, and the metal was heading for its first weekly gain in three weeks on dovish central banks and tumultuous stock markets.

Spot gold rose 0.1% to $1,293.87 an ounce as of 11.19am GMT, after touching a one-week low on Thursday. Prices have gained 0.2% so far this week. US gold futures increased by 0.3% to $1,297 an ounce.

The dollar fell 0.4% against key rivals, paring gains made in the previous session, and was en route to its first weekly decline in four weeks.

“Even after the US’s long, drawn-out trade spat with China and threats of a new trade war with the EU, there is still not much safe-haven buying in gold,” said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares and Stock Brokers.  “Gold has near-term support at $1,285 and huge resistance at $1,350.” 

Gold saw some support from Chinese central bank buying and dovish views from major central banks. But US economic data boosted the dollar and triggered a sell-off in gold on Thursday, taking down the key $1,300 level.

Weekly jobless claims in the US fell to the lowest in nearly half a century and producer prices increased the most in five months in March.

Gold’s break below $1,300 will be seen as a negative bias in charts used by technical traders, analysts and traders said. Gold may end its bounce around resistance at $1,297, then re-test support at $1,291, Reuters technical analyst Wang Tao said.

“Chinese demand, while remaining evident, did little to propel gold higher, rather providing an underlying level of support to restrict further declines,” MKS PAMP Group wrote in a note.  “Over the near term, price action will focus on the 10-day moving average at $1,287, while a break below this level would potentially bring the 200-day moving average of $1,250 into play. Resistance levels initially cut in at $1,300.”

Silver was up 0.1% on the day at $14.97 an ounce, but down about 0.3% for the week, its third straight weekly drop. Spot platinum rose about 1.4% to $900 an ounce, heading for its fifth straight weekly gain. Palladium was up about 0.6% at $1,373.50 anounce.