19.01.201801:41:00UTC+00Gold Climbs on Softer Dollar, But on Track for 1st Weekly Loss in Six

Gold prices climbed on Friday, bolstered by a softer dollar amid worries about a potential U.S. government shutdown. However, the precious metal was still poised for its first weekly loss in six weeks.

Spot gold increased 0.3 percent to $1,331.10 per ounce. The yellow metal hit its lowest level since Jan. 12 at $1,323.70, having dropped from recent four-month peaks. It has declined 0.5 percent so far this week, its worst since the week-ending Dec. 8.

U.S. gold futures were 0.3 percent higher at $1,331.40.

The U.S. dollar weakened amid worries over a potential U.S. government shutdown. The dollar index was down 0.1 percent at 90.394 on Friday.

Spot gold is still targeting $1,311 per ounce, as suggested by a small double-top and a Fibonacci retracement analysis, according to Reuters technical analyst Wang Tao.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased 1.42 percent to 840.76 tonnes on Thursday from Wednesday.

Environmental regulators ordered Barrick Gold Corp to close the Chilean side of its stalled Pascua-Lama mining project on Thursday, but reduced a 2013 fine for violations by more than 25 percent to $11.5 million.

Among other precious metals, silver rose 0.5 percent to $17.01 per ounce. Platinum increased 0.2 percent to $1,002, while palladium dropped 0.5 percent to $1,105.