Daily Times

Gold turned bullish on Friday, hitting a five-week high, though 2021 is set to be its worst year since 2015.

Gold in the international market was available at $1,825.90 per ounce, gaining $11.40 as of 1400 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, went up to Rs103,600 after gaining Rs100. Gold in the local market was available at Rs103,500 on Thursday last.

A relatively lower increase in price of the yellow metal in the local market was due to overnight decrease in gold’s price when the local market was closed. Moreover, the Pakistani rupee gained Rs1.74 paisa against the US dollar during the last two days, which also limited the overall gain in the local gold price.

According to experts, gold is trading in the upper half of its weekly range but seems to be having a difficult time with the 10-year US T-bond yield holding above 1.5 percent. The yellow metal stays on track to close the third straight week in the positive territory. However, the overall decrease in its price during the year as compared to previous years suggests that gold will face the worst year in six years. This year gold traded between $1,676 and $1,959 an ounce, following its best annual performance in a decade last year, in which the metal touched an all-time high of $2,072.50 per ounce. Gold prices have declined more than 4 percent so far this year after rising 48 percent over the previous two years, as the global economic recovery reduced demand for the safe-haven metal.

From a technical perspective, gold is neutral-to-bullish in the near term and faces immediate resistance at $1,831. The next level of resistance lies at $1,842.

On the flip side, the gold price enjoys strong support at 1,820.25, this week’s earlier high level. The next downside target is seen at $1,803 and the next level of resistance is at psychological level of $1,800.