Gold firms above $1,280 as weak US data rekindles rate cut hopes

Gold prices held steady on Friday after rising above $1,280 in the previous session as weak U.S. data pushed the dollar off 2-year highs and reignited hopes of a rate cut by the Federal Reserve this year.

Spot gold was mostly steady at $1,283.41 per ounce by 0252 GMT, after rising as much as 1.1% to a one-week peak of 1,287.23 in the previous session. The metal has risen 0.5% so far this week.

U.S. gold futures for June were down 0.2% at 1,282.40.

"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.

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