Gold hits fresh session tops, inching back closer to $1810 level

Gold continued gaining traction through the mid-European session and was last seen trading near the top end of its daily trading range, around the $1806-07 region.

The precious metal caught some fresh bids on the last trading day of the week and has now recovered a major part of the previous day's losses. The emergence of some heavy selling around the US dollar turned out to be one of the key factors that benefitted the dollar-denominated commodity.

The greenback was pressured by a strong pickup in the shared currency, supported by the optimism over a deal on the EU's proposed €750 billion coronavirus recovery fund. This coupled with a fresh leg down in the US Treasury bond yields provided an additional boost to the non-yielding yellow metal.

Meanwhile, the intraday positive momentum seemed rather unaffected by a positive tone surrounding the global equity markets. Despite the continuous rise in COVID-19 cases, hopes of a potential vaccine for the highly contagious disease remained supportive of the prevalent upbeat market mood.

It will now be interesting to see if the commodity is able to capitalize on the intraday gains or once again meets with some fresh supply at higher levels. This makes it prudent to wait for some follow-through buying beyond the $1810 resistance zone before positioning for any further gains.

Market participants now look forward to the US economic docket, featuring the release of housing market data and Prelim Michigan Consumer Sentiment Index. The data might influence the USD price dynamics and produce some trading opportunities on the last day of the week.

Technical levels to watch