Gold traded with a mild positive bias through the early European session and was last seen hovering near two-week tops, just below the $1845 level. The precious metal built on this week's goodish rebound from the $1764 region, or five-month lows and edged higher for the fourth consecutive session on Friday. The uptick was supported by the prevalent bearish sentiment surrounding the US dollar, which tends to benefit dollar-denominated commodities, including gold.
Investors now seem convinced that the Fed will expand its bond-buying program in December amid worries about the economic fallout from the imposition of recent COVID-19 restrictions in several US states. This, along with a modest pullback in the US Treasury bond yields further drove flows towards the non-yielding yellow metal.