Daily Times

Gold price remained almost flat in the international market amid a stronger US dollar on Friday after gaining for six days in a row.

Gold in the international market was available at $1,863.40 per ounce after gaining $0.50 at 1710 hours GMT.

Meanwhile, the price of 10 grams of yellow metal in Pakistan surged to Rs105,200 on Friday with an increase of Rs1,300. Gold in the local market was available at Rs103,900 per 10 grams on Thursday. The relatively higher increase in the gold price in the local market was due to depreciation of the Pakistani rupee against the US dollar as well as overnight increase in the gold price when the local market was closed.

From a technical point of view, gold this week confirmed a bullish breakout through the $1,834-32 supply zone and ascending trend-channel resistance. This further adds credence to the near-term constructive outlook, though slightly overbought RSI on short-term charts kept a lid on any further gains. Bulls might also wait for a sustained move beyond the $1,865 region before placing fresh bets around gold. The commodity might then accelerate the momentum towards testing an intermediate hurdle near the $1,886-87 region and aim to reclaim the $1,900 mark.

On the flip side, the ascending channel resistance breakpoint, coinciding with the $1,834-32 supply zone, should now act as a strong base for spot prices. Some follow-through selling might trigger long-unwinding trade and drag gold towards the next relevant support near the $1,815 horizontal zone en-route the $1,800 mark. Any subsequent pullback might continue to attract some dip-buying near the $1,834-32 strong horizontal resistance breakpoint.\ Nevertheless, gold remains on track to post its biggest weekly gains in six months and seems poised to appreciate further. A sustained move beyond the $1,865 region, or multi-month tops touched on Wednesday, will reaffirm the bullish bias and set the stage for an extension of the upward trajectory.