Gold rises to two-day highs, retreating approaching $ 1,900

• Gold witnessed a short hedging move on Friday amid renewed USD sell bias.
• Weaker risk sentiment, falling US bond yields continued to support the bullish move.
• The bulls may still wait for some solid follow-up purchases before placing new bets.

The gold added to its intraday gains and jumped to two-day highs around the $ 1,890 region during the early North American session.

The precious metal witnessed a short hedging move on the last trading day of the week and moved away from the one-month lows set in the previous session. The latest leg of a sudden rally over the last hour or so could be attributed to the surge in some new selling around the US dollar, which tends to benefit dollar-denominated commodities, including gold.

The USD bulls refrained from making any new bets, instead opting to take some gains off the table amid growing caution over the actual outcome of the US presidential election next week. The dollar was also pressured by falling US Treasury yields, which extended some additional support to the non-performing yellow metal and continued to support the intraday bullish move.

Aside from this, the chances of some intraday trading stopping on a sustained move above the $ 1,875-77 region could also be cited as one of the factors fueling the momentum. Therefore, it will be prudent to wait for a strong follow-up force before confirming that the XAU / USD has found a bottom in the near term and a positioning for any further appreciation moves.

On the economic data front, mostly upbeat second-tier US macro data did little to impress USD bulls or provide significant boost. Hence, USD price dynamics could continue to act as a sole driver of commodity movement on the last trading day of the week.

Technical levels