Daily Times

Gold prices edged lower on Wednesday after surging for three days, eroding a part of the previous day’s strong gains.

As of 1255 hours GMT, gold in the international market was available at $1,818.70 per ounce, shedding $3.

However, the price of 10 grams of yellow metal in Pakistan went up to Rs103,000 after gaining Rs400. Gold in the local market was available at Rs102,600 per 10 grams on Tuesday. An increase in the local gold prices was due to overnight increase in the gold price globally when the local market was closed.

According to experts, the upbeat market mood – as depicted by a generally positive tone around the equity markets – was seen as a key factor that acted as a tailwind for the safe-haven precious metal. Apart from this, the emergence of some US dollar buying exerted some pressure on the dollar-denominated commodity. An uptick in the US Treasury bond yields further underpinned the buck and weighed on the non-yielding gold.

From a technical perspective, the overnight convincing break through the $1,810-12 horizontal zone adds credence to the positive outlook. Hence, any further pullback is more likely to attract fresh buying and remain limited near the $1,800 mark. Failure to defend this level might prompt some technical selling and accelerate the fall towards the $1,790 region.