Gold steadily moves back above $1910 level, fresh session tops

Gold quickly reversed an early European session dip to the $1903 region and has now moved back to the top end of its daily trading range.

The emergence of some fresh selling around the US dollar assisted the dollar-denominated commodity to regain traction and move back into the positive territory for the third consecutive session on Friday. Fading hopes of additional US fiscal stimulus measures, along with the US political uncertainty kept the USD bulls on the defensive through the first half of the trading action on the last day of the week.

The greenback was further pressured by a modest pullback in the US Treasury bond yields, which tend to benefit the non-yielding yellow metal. However, concerns that a steep rise in COVID-19 cases could lead to renewed lockdown measures and hinder the global economic recovery might extend some support to the USD's status as the global reserve currency. This, in turn, should keep a lid on any strong gains for the XAU/USD.

Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move. Market participants now look forward to the release of the US monthly Retail Sales figures for a fresh impetus. Friday's US economic docket also features the release of Industrial Production data and the preliminary estimate of the October Michigan Consumer Sentiment Index.

The US macro data, along with the broader market risk sentiment and the US stimulus headlines, will play a key role in producing some meaningful trading opportunities on the last day of the week.

Technical levels to watch