- Gold witnessed some short-covering move on Friday amid renewed USD selling bias.
- Weaker risk sentiment, sliding US bond yields remained supportive of the move up.
- Bulls might still wait for some strong follow-through buying before placing fresh bets.
Gold added to its intraday gains and jumped to two-day tops, around the $1890 region during the early North American session.
The precious metal witnessed some short-covering move on the last trading day of the week and moved away from one-month lows set in the previous session. The latest leg of a sudden spike over the past hour or so could be attributed to the emergence of some fresh selling around the US dollar, which tends to benefit dollar-denominated commodities, including gold.
The USD bulls refrained from placing fresh bets, instead opted to take some profits off the table amid growing wariness about the actual outcome of the US presidential election next week. The greenback was also pressured by sliding US Treasury bond yields, which extended some additional support to the non-yielding yellow metal and remained supportive of the intraday move up.
Apart from this, possibilities of some intraday trading stops being triggered on a sustained move above the $1875-77 region could also be cited as one of the factors fueling the momentum. Hence, it will be prudent to wait for some strong follow-through strength before confirming that the XAU/USD has found a near-term bottom and positioning for any further appreciating move.
On the economic data front, mostly upbeat second-tier US macro data did little to impress the USD bulls or provide any meaningful impetus. Hence, the USD price dynamics might continue to act as an exclusive driver of the commodity’s move on the last trading day of the week.
Technical levels to watch
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