Gold trades with modest losses below $1620 level, downside seems limited

Gold edged lower through the early European session and is currently placed near the lower end of its daily trading range, just below $1620 level.

The precious metal failed to capitalize on the previous day's goodish intraday positive move to two week tops and came under some selling pressure on the last trading day of the week.

The US dollar stalled its week-long downtrend and regained some positive traction on Friday, which seemed to be a key factor exerting pressure on the dollar-denominated commodity.

However, Thursday's unprecedented jump in the US initial weekly jobless claims provided further evidence of the devastating impact on the US economy from the coronavirus pandemic.

The data largely offset the latest optimism over a massive $2.2 trillion US economic stimulus package, instead fueled growing market concerns about an imminent global recession.

This was reinforced by a weaker tone around the global equity markets, which extended some support to the commodity's perceived safe-haven status and helped limit deeper losses.

Nevertheless, the yellow metal remains on track to end the week above the $1600 round-figure mark and post its biggest weekly gains, of over 8%, since the 2008-09 global financial crisis.

Technical levels to watch