Daily Times

The gold price stalled its upsurge on Thursday amid firmer bond yields, following Wednesday’s short-squeeze that surged prices by 1.6 percent.

As of 1320 hours GMT, gold in the international market was available at $1,840 per ounce, shedding $0.30. The price of 10 grams of yellow metal in Pakistan, meanwhile, increased to Rs104,400 after gaining Rs1,400. Gold in the local market was available at Rs103,000 on Wednesday.

The increase in the local gold prices was due to the overnight upsurge in prices in the international markets when the local market was closed. Gold prices jumped as much as $30 to clinch fresh two-month highs of $1,843 on Wednesday amid a sudden turnaround in the investors’ sentiments.

The ongoing rally in the US Treasury yields on aggressive Fed’s tightening expectations failed to deter gold bulls, as they cheered 30-year high inflation rates in the UK and Germany. Investors rushed to the inflation-hedge gold, as worries over the economic impact of rising price pressures spooked markets. Additionally, risks of escalating Russia-Ukraine geopolitical tensions also underpinned gold’s safe-haven appeal and bolstered the rebound. From a technical perspective, the 14-Relative Strength Index (RSI) has turned slightly lower, but still holds comfortably above the midline. Any dip back to the $1830 area may be used by the gold bulls as an opportunity to reload on longs and perhaps target a move towards Q4 2021 highs in the $1870s.