Daily Times

Gold price remained on an upward trajectory on Monday, as the US dollar kept losing ground against its main competitors.

Gold in the international market was available at $1,805.10 per ounce after gaining $12.50 at 1255 hours GMT. Gold price made a sustained move above $1,800 amid dollar’s weakness, while market sentiment remained mixed.

Meanwhile, the price of 10 grams of yellow metal in Pakistan surged to Rs101,200 on Monday with an increase of Rs700. Gold in the local market was available at Rs100,500 per 10 grams on Saturday last. As the local currency has been depreciating against the US dollar consistently, gold rates have been going high.

According to experts, gold price is once again testing offers above the $1800 mark, as the bulls look for acceptance above the latter after Friday’s quick retracement from six-week tops of $1814. Amid persistent rising inflation fears due to supply chain crisis and surging energy costs, gold price is likely to keep the upper hand as an inflation hedge.

From a technical point of view, gold faces immediate resistance at $1807 and $1811. The next stop for gold bulls is seen at the previous day’s high of $1814, above which $1,818 will be a challenge. Further up, powerful resistance at $1820 will be a tough nut to crack for gold optimists.

On a flip side, sellers will probe the strong resistance-turned-support around $1800. Gold bears will then look out for the $1796 cap. Further south, a dense cluster of healthy support levels around $1793 will test the bullish commitments. The last line of defence for gold buyers lies at $1789.

However, experts are of the view that popularity of the precious metal has grown as it is seen as a means of protection against high inflation, a common trend in many countries around the globe despite the assurances of the financial authorities that the phenomenon is temporary. They said that gold prices are supported by growing fears about inflation and a decline in the dollar index.