Daily Times

International gold prices remained almost flat on Wednesday despite retreating US Treasury bond yields. Gold in the international market was available at $1,783.60 per ounce after shedding $1.50 at 1310 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, increased to Rs101,800 after gaining Rs400. Gold in the local market was available at Rs101,400 per 10 grams on Tuesday last. The increase in gold value in the local market was due to depreciation of the Pakistani rupee against the US dollar as well as overnight change in gold price when the local market was closed.

Gold edged higher during the early part of the trading and climbed to a one-week high at around $1,790. Retreating US Treasury bond yields undermined the US dollar and turned out to be a key factor that benefited the dollar-denominated commodity. Apart from this, rising geopolitical tensions further underpinned the safe-haven precious metal and contributed to the uptick.

The US recently announced that it would boycott the Winter Olympics in Beijing in protest of China’s alleged violations of human rights and actions against Muslims in Uyghur. Similarly, relations between the US and Russia took a turn for the worse after US President Joe Biden threatened to impose strong economic and other measures on Russia if it invades Ukraine.

However, uptick in the gold price did not sustain long and gold failed to manage to hold in the positive territory.

On the flip side, the $1,783 area seems to protect the immediate downside ahead of the overnight swing low, around the $1,772 region. This is followed by support near the $1,762 zone (monthly low), below which gold could accelerate the fall towards the $1,752-51 support.