By Karthika Suresh Namboothiri
(Reuters) - Gold fell on Friday as the dollar regained momentum and an improvement in risk sentiment lifted stock markets in Europe.
Spot gold fell 0.4 percent to $1,221.71 per ounce at 1317 GMT, while U.S. gold futures for December delivery were down 0.45 percent to $1,222.40 per ounce.
"It's really the dollar's move ... If gold breaks below $1,220, prices can quickly go to $1,200," Dawei Hou, precious metals trader at MKS SA, said.
Gold prices have traded within a range of $1,230.06 to $1,217.45 for the week thus far, their narrowest weekly range since August, partly due to the U.S. Thanksgiving holiday.
A weaker euro, on signs that economic growth across the euro zone could be slowing, helped the dollar, while European stocks opened higher following a volatile week.
Euro zone business growth was much weaker than expected this month as exports fell sharply, hurt by a slowing global economy and a trade war with the United States.
Gold market participants are now focused on the G20 summit in Argentina at the end of the month, where leaders from the United States and China are expected to hold talks against a backdrop of ongoing trade tensions.
"If there is nothing in terms of an agreement at the summit, there will be pressure on stocks. If there is an improvement, gold will go lower as people come back to stocks. People are now looking at the dollar as a safe haven," Hou said.
On the technical front, gold has been trading above its 50-day and 100-day moving averages and that is keeping it supported for the moment at the lower end, a Hong Kong-based trader said.
Among other precious metals, spot silver fell 1.8 percent to $14.22 per ounce and platinum slipped 0.47 percent, to $839.74 per ounce.
Silver has mostly been following gold but its moves tend to be more pronounced, said ABN AMRO analyst Georgette Boele.
"Investors have been disappointed with silver, so they try to see if it breaks in the upside and every time it doesn't, they quickly sell it again."
Palladium fell 0.91 percent to $1,142.50 per ounce. The metal was headed for its biggest weekly percentage decline since the week of July 20, down about 3 percent so far and drifting off a record high of $1,185.40 hit on Nov. 16.
(Reporting by Karthika Suresh Namboothiri and Swati Verma in Bengaluru; Editing by Susan Fenton and Alexander Smith)
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