Gold traded with a mild positive bias through the early European session and was last seen hovering near the top end of its weekly trading range, around the $1860 region. Following the previous day's modest pullback from the vicinity of 50-day SMA, the precious metal managed to regain positive traction and edged higher for the second consecutive session on Wednesday. The uptick was supported by a softer tone surrounding the US dollar, which tends to benefit dollar-denominated commodities, including gold.

Hence, any further positive move is more likely to confront a stiff resistance and remain capped near the $1885-90 congestion zone, which coincides with the very important 200-day SMA. A convincing breakthrough, leading to a subsequent strength beyond the $1900 mark will negate the negative bias and pave the way for additional gains.