By Haresh Menghani

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• The US midterm election results-led USD weakness helps regain positive traction.
• A fresh leg of a downfall in the US bond yields provides an additional boost.
• Further gains are likely to remain capped amid the prevalent risk-on mood.

Gold quickly reversed a knee-jerk slide to four-day lows and was now seen building on its intraday positive momentum further beyond $1230 level.

The broader market sentiment was driven by the incoming US midterm election results and was seen as one of the key factors influence the precious metal's price action during the Asian session.

With the official results confirming a split Congress, the prospect of legislative gridlock was seen as a negative catalyst for the US Dollar and underpinning demand for the dollar-denominated commodity.