- Gold regains some positive traction on the last trading day of the week.
- The prevailing risk-on mood, positive US bond yields seemed to cap gains.
Gold edged higher on the last trading day of the week and is currently placed near the top end of its three-day-old trading range, around the $1555-56 region.
The precious metal regained some positive traction on Friday and was being supported by some scepticism over the long-awaited phase one trade deal between the world’s two largest economies.
Downside seems limited
Given that the US levies on around $360 billion worth of Chinese products remain unchanged, doubts the two sides can maintain a cordial relationship extended some support to the commodity.
This coupled with the fact that risks to the global economic growth remain firmly in place might continue to underpin the precious metal’s perceived safe-haven status and help limit any deeper losses
However, the prevailing risk-on mood – reinforced by a goodish pickup in the US Treasury bond yields – turned out to be the only factor keeping a lid on any runaway rally for the non-yielding yellow metal.
Moving ahead, Friday’s second-tier US economic releases might influence the US dollar price dynamics and produce some meaningful trading opportunities around the dollar-denominated commodity.