Daily Times

Gold price inched up on Monday and moved away from over one-week lows amid a strong US dollar.

Gold in the international market was available at $1,790.50 per ounce after gaining $5.20 at 1530 hours GMT. Worries about the risk of stagflation turned out to be a key factor that benefited the yellow metal.

Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs98,900 on Monday with an increase of Rs200. Gold in the local market was available at Rs98,700 per 10 grams on Saturday last.

According to experts, the gold price is moving back and forth within a $10 range, lacking any clear directional bias. Gold edged higher during the early part of the trading action on Monday and moved away from over one-week lows touched in the previous session, albeit lacked any follow-through.

From a technical perspective, repeated failures near the $1,810-12 resistance zone and the subsequent fall on Friday suggests that the recent positive move has run out of steam. This might have already set the stage for a slide towards testing the $1,762 support area. The corrective pullback from multi-week tops could further get extended towards October monthly swing lows, around the $1,745 area.

On the flip side, any meaningful recovery now seems to confront stiff resistance near the $1,790-92 region (100/200-day SMAs confluence) and remain capped near the $1,800 mark. A sustained strength beyond could allow bulls to make a fresh attempt to clear the $1,810-12 barrier and push gold prices towards the $1,832-34 heavy supply zone.

Gold is struggling to remain above the 1,800 handle and has been hovering within a consolidation area of 1,723-1,834 since June 16. The short-term outlook for gold remains neutral and within a broad range of 1,723-1,834. The simple moving averages are generally flat and converging, implying a more neutral price behaviour. The RSI is flattening around the neutral threshold of 50, while the stochastic is heading south towards the oversold region.