Daily Times

Gold prices edged up after a two-way price move amid a calmer risk tone but Russia-Ukraine tensions and a weaker US dollar remain supportive. As of 1330 hours GMT on Wednesday, gold in the international market was available at $1,904.40 per ounce, gaining $5.90. Out of $5.90 per ounce increase, +$3.80 was due to the dollar’s weakness and +$2.10 was due to predominant buyers. The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, increased to Rs108,000 after gaining Rs200. Gold in the local market was available at Rs107,800 on Tuesday last. The increase in local prices was due to overnight increase in the commodity’s price in the global market when the local market was closed. According to experts, geopolitics will continue to lead the sentiment, with Ukraine in the eye of a storm. Resurgent flight to safety will revive the bullish interest in gold price, as Russia-Ukraine tensions remain supportive.

They said that markets weigh in the recent sanctions imposed by the West to punish Russia over its aggression on East Ukraine. Further, the Ukrainian President Volodymyr Zelenskyy expecting no conflict with Russia also helped calmed nerves. The risk of a full-scale Russian invasion of Ukraine, however, remains on the table, which could help gold bulls find some comfort alongside resurfacing worries over inflation on soaring energy prices. Next of relevance for gold traders remains the G7 meeting on Thursday and the geopolitical developments surrounding the Russia-Ukraine conflict. From a technical perspective, bulls will look for acceptance above the June 2021 highs of $1,917 once the eight-month highs of $1,914 is recaptured.