Gold Price Analysis: XAU/USD clings to gains near $1,730

• XAU/USD continues to fluctuate in tight weekly range.
• US Dollar Index posts small daily gains near 97.50.
• Major European equity indexes are rising on Friday.

Since dropping toward $1,700 on Monday, the troy ounce of the precious metal is trading in a relatively tight range and seems to be having a difficult time determining its next short-term direction. As of writing, the XAU/USD pair was up 0.45% on a daily basis, trading at $1,730.65.

Risk-on flows limit XAU/USD's upside

The market mood remains upbeat on Friday in the absence of significant fundamental developments that could impact the risk sentiment. At the moment, major equity indexes in Europea are gaining between 0.95% and 1.35%, capping safe-haven gold's gains for the time being.

On the other hand, the greenback seems to have lost its strength after closing the previous three days stronger against its major rivals. With the US Dollar Index staying flat on the day a little below 97.50, the pair stays in a consolidation phase in its weekly channel.

There won't be any macroeconomic data releases from the US in the remainder in the day. Meanwhile, Jerome Powell, Chairman of the Federal Reserve, and Minneapolis Fed President Neel Kashkari are both scheduled to deliver speeches later in the American session.

In the meantime, the S&P 500 futures are up 0.8% on the day, suggesting that Wall Street's main indexes are likely to open in the positive territory.

Technical levels to watch for