Daily Times

International gold prices continued their upward trend on Thursday after falling to a two-month low in the previous session.

Gold in the international market was available at $1,784.60 per ounce after gaining $6.30 at 1545 hours GMT. Gold gained some follow-through traction following the previous day’s recovery move after the Federal Reserve said it will end its stimulus bond-buying programme more quickly amid a rising threat from inflation, but keep interest rates at zero until labour market conditions improve further.

The price of 10 grams of yellow metal in Pakistan, meanwhile, remained flat at Rs102,100. Local prices remained flat as fluctuation in international prices occurred at a time when local markets were closed as well as the rupee remained unchanged against the US dollar during the day.

From a technical perspective, any subsequent move up is likely to confront stiff resistance near a technically significant 200-day SMA. The mentioned barrier, around the $1,795 region, coincides with the 100-day SMA. A sustained strength beyond the confluence hurdle should pave the way for a further near-term appreciating move. Gold could then accelerate the momentum towards an intermediate resistance near the $1,812-15 region before eventually climbing to test the $1,832-34 supply zone.

On the flip side, any meaningful pullback now seems to find decent support near the $1,770 level. Some follow-through selling has the potential to drag the gold price back towards the overnight swing low, around the $1,753 region, which if broken will be seen as a fresh trigger for bearish trades.