Daily Times

Gold price consolidated previous day’s gains by over 0.35 percent on Thursday due to weaker dollar on further rise in US inflation and unclear situation regarding the start of tapering stimulus, which markets widely expected to begin in November/December.

Gold in the international market was available at $1,800 per ounce after gaining $6.20 at 1130 hours GMT.

Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs99,000 after gaining Rs1,700. Gold in the local market was available at Rs97,300 per 10 grams on Wednesday. The huge upward difference in local and international prices was due to overnight change in gold price when the local market was closed.

According to experts, spot gold rose 1.82 percent on Wednesday, the second biggest daily advance in 2021. Fresh advance broke through 200 DMA ($1796) and hit a one-month high, pressuring a psychological $1800 barrier, break of which would generate fresh bullish signal for further advance.

Bullish daily studies support the near-term action which is currently riding on the third wave of five-wave cycle from $1721 (September 29 low). Bulls extended above 100pc of Fibonacci expansion that opens way towards targets at $1,814 and $1,825 in extension. Thick daily cloud, above which the price emerged on Wednesday, underpins the action and cloud top $1,784 marks solid support, expected to keep the downside protected.

According to experts, the daily closing above the critical resistance around $1796-$1799 is needed to unleash additional upside in gold price. That price zone is the confluence of the bearish 100 and 200-DMAs. The next relevant bullish target is envisioned near $1807-$1809, mid-September highs. If the latter gives way, then a fresh upswing towards the September highs of $1834 will be inevitable.