Gold edges higher within this week's narrow trading range

   •  Unresolved US-China trade disputes/renewed USD weakness helps regain traction.
   •  The prevalent risk-on mood/rising US bond yields kept a lid on any strong gains.

Gold held on to its modest daily gains through the early European session, albeit remained well within this week's trading range. 

The precious metal once again managed to find some support near the $1277-76 region on Thursday following less optimistic comments by the US Secretary of Commerce Wilbur Ross, saying that we are still miles and miles apart on trade.

Meanwhile, the US Dollar struggled to build on the overnight goodish positive momentum and held on the defensive on the last trading day of the week, and was further seen providing an additional boost to the dollar-denominated commodity.

The uptick, however, lacked any strong follow-through and remained capped below weekly tops amid the prevalent risk-on mood, reinforced by a goodish pickup in the US Treasury bond yields kept a lid on any meaningful up-move for the perceived safe-haven/non-yielding yellow metal. 

In absence of any major market moving economic releases from the US, focus shifts the upcoming US-China trade talks and the latest FOMC monetary policy update, scheduled for next week, which will now be looked upon for some fresh imputes and determining the next leg of a directional move.

Technical levels to watch

The $1286-87 region might act as an immediate resistance, above which the metal seems all set to aim back towards challenging the $1193-94 supply zone. On the flip side, weakness back below $1280 level might continue to find some buying near the $1277-76 support area, which if broken might accelerate the fall further towards $1270-68 horizontal zone.