Daily Times

The gold prices inched up on Monday despite firmer US dollar on a heightened safe-haven demand amid Russia-Ukraine issue. As of 1350 hours GMT, gold in the international market was available at $1,836.70 per ounce, gaining $1.10. The price of 10 grams of yellow metal in Pakistan, meanwhile, increased to Rs104,100 after gaining Rs100. Gold in the local market was available at Rs104,000 on Saturday. A relatively higher increase in the local gold prices was due to 0.14 percent depreciation of Pakistani rupee against the US dollar during the day.

Gold attracted some dip-buying on the first day of a new week and reversed a major part of the previous week’s pullback from a two-month high. As geopolitical concerns mount about a potential Russian military incursion into Ukraine, gold prices are finding support via safe-haven demand and shrugging off the negative headwinds from a stronger US dollar. Meanwhile, the long-term US Treasury bond yields remained modestly lower, which also supported the yellow metal.

From a technical perspective, bulls need to retest the two-month’s and last week’s highs – $1848 – before it prepares to take on the November 22 high of $1,849. Daily closing above that level could initiate a fresh uptrend in gold price. The next resistance level lies around $1,860 and some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for an extension of the recent move up.

On the flip side, the $1,832 level seems to act as an immediate support and any pullback towards this level might be seen as a buying opportunity. A convincing break below might prompt some technical selling and accelerate the fall towards the $1,812. The next relevant support is pegged near the very important 200-day SMA, currently at $1,804, ahead of the $1,800 round figure. Some follow-through selling below will push down prices towards $1,794, which will negate all positive bias and make gold vulnerable to further losses.