Daily Times

Gold staged a decent comeback on Tuesday, gaining over half a percent amid revival of the omicron Covid variant fears. Gold in the international market was available at $1,795.50 per ounce after gaining $10 at 1420 hours GMT.

Meanwhile, the price of 10 grams of yellow metal in Pakistan decreased to Rs101,000 after shedding Rs300. Gold in the local market was available at Rs101,300 per 10 grams on Monday last. The decrease in gold value in the local market was due to overnight change in the commodity’s price when the local market was closed.

Gold bounced back as bulls look to recapture the $1,800 mark amid the omicron Covid variant fears. A flight to safety theme remains in vogue, as investors scurry to the US Treasuries, killing the demand for the yields. The sell-off in the US rates have heavily weighed on the dollar, boosting gold’s appeal. However, should risk-aversion intensify the greenback could regain its safe-haven status, capping the gold price recovery.

From a technical view, the gold price is extending its recovery towards $1,799-$1,800, which is the previous day’s high. The next relevant upside resistance for gold bulls is pegged at 1,806. Further up, $1,808 will test the bearish commitment on the road to recovery. The previous month’s high at $1,814 continues to remain on the buyers’ radars.

On the flip side, the immediate downside seems guarded by a dense cluster of healthy support levels around $1,793. The next critical cushion is seen at $1,789 and floors will then open up towards Friday’s low of $1,780.55. According to experts, gold has seen choppy trade since last Friday, in tandem with a pick-up in cross-asset volatility given worries about the newly discovered Covid-19 variant (Omicron) in South Africa. It swung as high as $1815 last Friday as the US dollar and US yields dived as Omicron fears saw markets pull back on hawkish Fed bets, but then lost momentum and quickly pulled back under $1800 again.