Daily Times

Gold price inched up on Tuesday but remains well within the recent trading range above the $1750 level, as a flight to safety amid intensifying stagflation fears offers support to the traditional safe-haven gold. Gold in the international market was available at $1759.30 per ounce after gaining $4.50 at 1255 hours GMT. Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs96,700 after gaining Rs300. Gold in the local market was available at Rs96,400 per 10 grams on Monday. According to experts, a pause in the US Treasury yields rally aided the rebound in gold price. However, the Fed’s tapering expectations continue to limit gold’s upside potential, as investors await the return of full markets and Wednesday’s critical US inflation report for a fresh directional move in gold price. From a technical point of view, gold is moving back and forth, without a clear directional bias, with a bunch of healthy barriers stacked up in either direction. Immediate upside is capped at $1,762, while the next significant topside hurdle is seen at $1765. Gold bulls need to find acceptance above the pivot point one-day R3 at $1771 to initiate a meaningful uptrend, they said. Alternatively, gold buyers will once again challenge bids at $1755. A sustained move below the latter will expose the $1750 psychological level, below which the next downside target at $1748 could get tested. The next cushion appears around $1745. The pivot point one-week S1 at $1741 will be the level to beat for gold bears.