* Spot gold may break a support at $1,272/oz - technicals Silver up 0.1 pct after hitting 8-wk low on Thursday
* Gold in narrowest range in 12 years: http://reut.rs/2AHXSbd
(Updates prices, adds quotes, recasts first graph) Dec 1 (Reuters) - Gold edged higher on Friday as the dollar eased, but was still trading near the 3-1/2-week low touched in the previous session, with investors flocking to riskier assets amid a surge in U.S. equities.
Spot gold was up 0.1 percent at $1,275.81 an ounce at
0830 GMT. On Thursday, it fell 0.7 percent to touch its lowest since Nov. 6 at $1,270.11. The yellow metal is down 0.9 percent for the week.
U.S. gold futures gained 0.2 percent to $1,275.30.
"There is a positive mood in the equity market. The U.S. dollar has been strong too (overall). So, it is not beneficial for investors to invest in the commodity market now," said Dick Poon, general manager at Heraeus Metals Hong Kong Limited. "People are focusing on stocks in the short-term and are also awaiting an interest rate hike by the U.S. Federal Reserve." On Wall Street overnight, major indexes marked gains with the S&P 500 SPX hitting a record closing high and the Dow Jones
industrial average topping the 24,000 mark for the first
time. The continued strength in equities and higher yields are putting pressure on gold, MKS PAMP said in a note.
The dollar index , which gauges the greenback against
a basket of six major rivals, was down 0.2 percent as the market endured the wait for a vote on a U.S. tax reform bill. The Republican tax overhaul stalled on a procedural issue as the Senate debated the legislation late into Thursday and adjourned, putting off any votes until Friday morning. It was unclear if a decisive vote on the bill would occur then.
Spot gold may break a support at $1,272 per ounce and fall more towards the next support at $1,263.35, as suggested by a Fibonacci retracement analysis and a wedge, according to Reuters technical analyst Wang Tao. "While gold remained in a tight range for much of November, silver is looking much sorrier on the charts and may have more downside," INTL FCStone analyst Edward Meir said. A lack of clear drivers has kept gold between $1,265 and $1,300 an ounce throughout November, its narrowest monthly range in 12 years.
Silver rose 0.1 percent at $16.43 after matching an
Oct. 6 low of $16.30 an ounce in the previous session. It was down 3.2 percent for the week.
Palladium rose 0.5 percent to $1,011.72 and was up 1.5 percent for the week. Platinum was up 0.1 percent at
$941.80 an ounce and rose 0.2 percent for the week.
(Reporting by Vijaykumar Vedala and Arpan Varghese in Bengaluru; Editing by Michael Perry and Vyas Mohan)