Daily Times

International gold prices went down on Wednesday amid expectation that the Federal Reserve will accelerate its removal of monetary stimulus.

Gold in the international market was available at $1,767.30 per ounce after shedding $4.90 at 1450 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, also decreased to Rs101,100 by shedding Rs1,000. Gold in the local market was available at Rs102,100 on Tuesday last.

The hawkish Fed expectations are undermining gold price, which is hovering near its two-week lows, with its fate hinging on the Fed’s pace of tapering, which will likely hint at potential rate hikes next year. Investors have turned cautious and refrain from placing any directional bets on the bright metal.

From a technical view, the gold price tested the key support near $1,765 amid the latest leg down. That level is the convergence of the previous day’s low and the previous low four-hour. Gold bears now target the pivot point one-day S1 at $1,762 on selling resurgence. Powerful support at $1,760 will then challenge the bullish commitments. At that point, the previous month’s low coincides with the pivot point one-week S2.

Alternatively, the recovery is likely to face stiff resistance around the $1,770-$1,772 region. Further up, the resistance at $1,776 will come into play. The next bullish target is envisioned at $1,781.