Gold climbs to session tops, around $1470 region
|- Renewed US-China trade optimism weighed heavily on gold’s safe-haven status on Thursday.
- The UK election results further boosted the global risk sentiment and added to the selling bias.
- Some renewed USD weakness extended some support to the dollar-denominated commodity.
Gold managed to reverse an early dip to multi-day lows and is currently placed near session tops, around the $1470 region.
The previous witnessed some follow-through selling during the Asian session on Friday and extended the previous session's sharp intraday reversal from the vicinity of 100-day SMA barrier, or over one-month tops.
A fresh wave of the global risk-on trade, triggered by renewed optimism over a “phase-one” trade deal between the world's two largest economies, weighed heavily on traditional safe-haven assets, including gold.
Investors' appetite for perceived riskier assets got an additional boost from the outcome of the UK election, wherein a clear majority for the incumbent Conservative Party removed any risk of a no-deal Brexit.
The risk-on mood was further reinforced by some follow-through pickup in the US Treasury bond yields, which further drove flows away from the non-yielding yellow metal and contributed to the early slide.
Meanwhile, some renewed selling bias surrounding the US dollar, primarily on the back of a strong upsurge in the British pound, limited losses for the dollar-denominated commodity, rather helped gain some traction.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly retail sales data, which might produce some short-term trading opportunities on the last day of the week.
Technical levels to watch
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