Daily Times

After closing another week on a positive trajectory with 0.60 percent gain on a week-on-week basis to reach $1828.60 per ounce against last week closure price of $1,817.80, gold is expected to stay in a consolidation phase with an average target of $1,832 in the week starting today (Monday).

Meanwhile, the price of gold surged by 0.92 percent in Pakistan during the week, mainly due to depreciation of rupee against the US dollar. The local currency depreciated by 0.78 percent against the US dollar during the week, as the dollar opened at Rs165.62 on Monday last and closed at Rs166.91 on Friday last. The price of 10 grams of yellow metal in Pakistan was Rs97,300 at the opening of the last week and it increased to Rs98,200 to close the week.

After gaining more than 2.08 percent in the preceding week, gold advanced to its strongest level since early August at $1,823 on Monday last but struggled to preserve its bullish momentum in the next three days and moved sideways. However, with the US August jobs report painting a dismal labour market picture, gold broke out of its weekly range and settled around $1,830, with around one percent gain on Friday last that helped gold close the week on a positive note.

From a fundamental side, gold is likely to stay relatively quiet on Monday due to the Labour Day holiday in the US. The US Federal Reserve will publish its Beige Book on Wednesday and investors will look for clues regarding price pressures.