- Gold lacked any firm directional bias and remained confined in a range on Friday.
- A strong rebound in the US equity futures dented the metal’s safe-haven status.
- The prevalent USD selling bias extended some support and helped limit any losses.
Gold seesawed between tepid gains/minor losses through the early European session on Friday and was last seen trading in the neutral territory, around the $1945 region.
A combination of diverging forces failed to provide any meaningful impetus to the commodity and led to a subdued/range-bound price action on the last trading day of the week. The prevalent selling bias surrounding the US dollar was seen as one of the key factors that extended some support to the dollar-denominated commodity and helped limit the downside.
The greenback remained depressed through the first half of the trading action on Friday and was being weighed down by the political deadlock over the US fiscal stimulus measures. Democrats on Thursday voted to block a Republican bill, providing around $300 billion in new coronavirus aid, on grounds that the package was far lower than what they have been pushing for.
However, a strong rebound in the US equity futures undermined demand for traditional safe-haven assets and kept a lid on any positive move for the precious metal. This comes on the back of the recent range-bound trading action and the overnight pullback from over one-week tops, warranting some caution before placing any aggressive directional bets.
Market participants now look forward to the release of the latest US consumer inflation figures for August, due later during the early North American session. That data, along with the broader market risk sentiment, will influence the commodity and produce some short-term trading opportunities on the last day of the week.
Technical levels to watch
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