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  • A combination of supporting factors assisted gold to reverse an intraday dip.
  • A subdued USD demand, softer risk tone extended some support to the metal.
  • Bulls now seemed reluctant ahead of Friday’s release of the close-watched NFP.

Gold reversed an intraday dip to the $1935 area and has now moved back closer to multi-week tops set in the previous session.

The precious metal managed to attract some dip-buying on the last trading day of the week and was supported by a combination of factors. The US dollar struggled to preserve its modest intraday recovery gains, which, in turn, extended some support to the dollar-denominated commodity.

The final result of a nail-biting US presidential election remains unclear two days after polls ended on Wednesday and depends on the vote count from few remaining battleground states. The wait for the results and the high degree of uncertainty held the USD bulls from placing any aggressive bets.

Meanwhile, the possibility of a legal battle could lead to prolonged uncertainty. Apart from this, diminishing hopes for large US fiscal stimulus packages to support the economy, took its toll on the global risk sentiment and further benefitted the yellow metal’s perceived safe-haven status.

Despite the supporting factor, investors might refrain from positioning for big movement in either direction ahead of Friday’s release of the closely-watched US monthly jobs data. The NFP report, along with US political developments, will influence the risk sentiment and produce some trading opportunities.

Technical levels to watch