Gold consolidates in a range below weekly tops set on Thursday
| • Stability in financial markets undermines the commodity’s safe-haven demand.
• A goodish bounce in the US bond yields further collaborated towards capping gains.
• A subdued USD price action might help limit downside ahead of the US macro data.
Gold held steady through the early European session on Friday and was seen consolidating the overnight strong up-move to weekly tops.
A combination of supporting factors provided a strong boost to the precious metal on Thursday and provided the required momentum to make it through the $1277-78 horizontal resistance.
A further escalation in the US-China trade disputes triggered a selloff across global equity markets and turned out to be one of the key factors underpinning the precious metal's safe-haven status.
The global flight to safety dragged the US Treasury bond yields sharply lower and prompted some US Dollar long-unwinding trade and further boosted demand for the dollar-denominated commodity.
However, with some initial signs of stability in the global financial markets, a goodish rebound in the US bond yields kept a lid on any strong follow-through up-move for the non-yielding metal.
Meanwhile, the downside remained cushioned amid a subdued USD price action as market participants now look forward to the release of US durable goods orders data for some fresh impetus.
Technical levels to watch
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