Gold edged lower during the European session and dropped back closer to the lower end of its weekly trading range, around the $1930 level. The precious metal met with some fresh supply on the last trading day of the week and eroded a part of the previous day's modest recovery move from weekly lows. An unexpected jump in the US Initial Jobless Claims added to the market worries about the US economic recovery.
This comes amid the uncertainty over the next round of the US fiscal stimulus measures, which boosted the metal's perceived safe-haven status. However, some renewed US dollar buying interest on Friday prompted some fresh selling around the dollar-denominated commodity. From a technical perspective, the commodity's inability to capitalize on last week's strong rebound from multi-week lows points to the emergence of some fresh selling. Hence, a subsequent slide back towards the $1900 mark now looks a distinct possibility.