Daily Times

Gold prices remained range-bound in the international market amid a lack of fresh catalysts on Wednesday.

Gold in the international market was available at $1,792.60 per ounce after gaining $2.50 at 1340 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, slipped to Rs102,800 after losing Rs100. The drop in local price was due to overnight change in the international prices, as gold ended the session lower a day earlier, when the local market was closed.

Investors remain wary and refrain from placing aggressive bets amid looming concerns over the Omicron Covid variant contagion and its impact on the global economic recovery. Gold price seems to remain at the mercy of the broader market sentiment.

According to the experts, focus shifts to the US top-tier economic data for fresh trading impetus. The gold prices remained buoyed by the risk-off market profile. Uncertainties surrounding the Omicron variant of the coronavirus sap investors’ confidence. Cautious market mood continues to keep investors away from placing any directional bets on the bright metal, leaving it exposed to downside risks.

From a technical perspective, the gold price is likely to challenge strong resistance around $1,800 on its road to recovery. If this level is taken out convincingly then gold bulls will look to retest the previous day’s high at $1,804. Fresh buying opportunities will emerge on a break above the previous day’s high to $1,810. The previous week’s high of $1,814 will be the level to beat for gold buyers.

On the flip side, strong support awaits at $1,792, below which the level of $1,785, previous day’s low, will be put to test. A fresh down-swing towards the $1,1776 level will be in the offing if the bears clear the previous hurdle.

However, a further downfall back towards testing the monthly swing low, around the $1,753 region, remains a distinct possibility.