Jan 26 (Reuters) - Gold prices edged up on Friday, after falling from 1-1/2-year highs in the previous session, as the dollar remained weak despite U.S. President Donald Trump backing a stronger currency. Spot gold rose 0.3 percent to $1,351.40 per ounce at 0333 GMT. The metal has gained 1.5 percent so far this week. Spot gold hit 1,366.07 on Thursday, highest since Aug. 3, 2016, reversing gains after Trump told CNBC in Davos, Switzerland, that he wants to see a strong dollar. U.S. gold futures were down 0.9 percent at $1,351.10 per ounce. Trump's comment contradicted comments made by Treasury Secretary Steven Mnuchin a day earlier. The dollar weakness is continuing to support gold prices, helping to hold them steady despite Trump's comments, said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. "There is some very good support for gold on the downside around $1,340 and a resistance around $1,360," he said. The dollar index , a measure of the greenback against a basket of currencies, hit its weakest since December 2014 at 88.438 on Thursday. It was last down 0.3 percent at 89.154. "While catching short-term speculators off guard, the gold price retracement will not threaten long-term positions whose view are cemented around a probable equity market correction and an extension of the U.S. dollar downtrend," Stephen Innes, APAC trading head at OANDA said. Gold could break above $1,500 an ounce this year for the first time since its 2013 crash, GFMS analysts at Thomson Reuters said on Thursday, with the risk of a drop in surging equities and political instability boosting its appeal as a safe investment haven. Reuters
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