Daily Times

Gold prices edged down for the third straight session in the international market on Monday and has shed almost $60 an ounce since Friday last. At 1245 hours GMT, gold in the international market was available at $1,743.40 per ounce after shedding $21.20 as compared to its closing value on Friday last.

Meanwhile, the price of 10 grams of yellow metal in Pakistan decreased to Rs92,000 after shedding Rs1,000. The closing prices of the yellow metal in the country settled at Rs93,000 on Friday last.

According to experts, gold has stalled its recovery from five-month lows of $1688, having failed to find acceptance above $1750, as the US dollar continues to hold the recent gains fuelled by Friday’s Nonfarm Payrolls (NFP) data. A big beat on the US employment report fanned expectations of earlier Fed tapering. Investors now assess the implications of a sooner than previously thought Fed’s monetary policy assessment, with all eyes on this week’s US inflation report.

They said that gold is heading towards powerful support at $1736, which is the convergence of the pivot point one-month S2, pivot point one-week S1. The next relevant downside target is seen at $1729, the pivot point one-day S2. Further south, the bears will need to beat the fierce cap at $1723, the Fibonacci 161.8pc one-month.

They said that on the flip side, the confluence of the SMA5 four-hour and pivot point one-day S1 at $1746 will offer a stiff resistance on any fresh upside attempts. The next resistance awaits at the previous day’s low of $1759, they added.