• An uptick in US bond yields prompts some profit taking.
• Risk-on mood/modest USD rebound adds to the pressure.
• All set for the fourth consecutive week of gains; focus remains on NFP.
Gold prices edged lower on Friday and eroded part of previous session's sharp up-move to fresh 3-1/2 month highs.
A modest uptick in the US Treasury bond yields prompted some profit-taking off the non-yielding yellow metal, especially after yesterday's single day up-move of around 1.5% from an intraday low near $1306 area.
Meanwhile, the ongoing bullish run-up in equity markets also did little to support the precious metal's safe-haven appeal, while reviving US Dollar demand exerted some additional pressure on the dollar-denominated commodity.
Investors' focus on Friday would remain glued to one of the important US economic indicators - monthly jobs report, popularly known as NFP, which is known to infuse volatility across global financial markets and should eventually provide meaningful trading opportunities on the last trading day of the week.
Nevertheless, the commodity remains on track to post fourth consecutive week of gains and all set for its highest weekly close since mid-September.
Technical levels to watch
A follow-through retracement below $1317 level is likely to get extended towards $1312 horizontal support, which if broken might turn the commodity vulnerable to retest $1307-06 intermediate support ahead of the $1300 handle.
On the upside, momentum back above $1322-23 area would reaffirm near-term bullish bias and accelerate the up-move towards $1328 horizontal level en-route $1333-35 supply zone.
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