Gold edged up from the previous day's four-week low on Friday as the dollar fell and investors sought a safe haven from geopolitical uncertainty caused by rising tensions between North Korea and the United States.
North Korea said on Friday it might test a hydrogen bomb in the Pacific Ocean after Trump threatened to destroy the country, with leader Kim Jong Un promising to make a "mentally deranged" Trump pay dearly for his threats.
The Japanese yen and Swiss franc gained, while U.S. stocks and the greenback were down. Spot gold was poised to finish the week down 1.5 percent, the largest such decline since early July.
The Fed earlier this week signaled it was still on track to raise interest rates by year-end. Tighter monetary policy raises the opportunity cost of holding non-yielding bullion. The dollar had risen to a two-month peak following the Fed's comments.
On technical front, spot gold was up 0.36 percent at $1,295.71 per ounce, having hit a four-week low of $1,287.61 on Thursday. Prices hovered near support at the 50-day moving average at around $1,288.
The key support at the 100-day moving average of $1,267 will provide a floor to gold prices. The resistance can be found at $1,300 and $1,320. Crossing over $1,300 will ease the downward pressure, while regaining the ground of $1,320 will push bullion back to the upward momentum formed at the beginning of the year.
Spot silver steadied at 16.95 an ounce, supported by the 100-day moving average. The 20-day moving average is further pushed down to $17.36, approaching the 200-day moving average. Silver prices are quite likely to breach below the 100-day moving average of $16.85.

 
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