By Clara Denina
LONDON (Reuters) - Gold rose on Friday as chart levels were broken, but was still heading for its first weekly fall in four, pressured by a stronger dollar and renewed expectations for a U.S. rate hike this year despite recent soft economic data.
Spot gold climbed 0.7 percent to $1,203.10 an ounce by 0942 GMT. Flat initially, it gained momentum after a break of technical resistance at $1,196 that triggered automatic buy orders.
Bullion was however still down around 0.5 percent for the week, having pulled back from Monday's seven-week top of $1,224.10 that was triggered by last week's weak U.S. employment report.
U.S. gold for June delivery was up $9.90 an ounce at $1,203.50.
"We saw a technical move this morning that pushed prices above $1,200... but if we see some selling into the rally perhaps we can come back down again," Mitsubishi Corp strategist Jonathan Butler said.
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"Looking at the slightly longer-term chart, (prices are) still heading for a weekly fall ... (after) what we heard at the FOMC meeting, very much keeping the door open to a June rate rise."
Gold on Friday shrugged off the impact of a stronger dollar and higher European equities.
But the longer-term outlook is still bearish, traders said, and prices had surrendered gains after Federal Reserve officials suggested a June rate hike could still be in play.
Investors tend to shun gold, which doesn't pay interest, when market expectations point to U.S. interest rates rising.
Gold could drop to a five-year low of $1,100 this year due to the relative health of the U.S. economy compared to Europe and emerging markets, GFMS analysts at Thomson Reuters said.
Gold buying in Asia was slow this week as firmer spot prices turned off buyers, especially in China, and a potentially weak monsoon threatened demand in India.
Premiums for physical gold at the Shanghai Gold Exchange stood at a modest $1-$2 an ounce over the global spot benchmark on Friday.
Spot silver rose 2.6 percent to $16.54 an ounce, while platinum gained 0.8 percent to $1,164 an ounce and palladium was up 0.9 percent at $766.98 an ounce.
(Additional reporting by Manolo Serapio Jr in Singapore; Editing by Ruth Pitchford)