Daily Times

Gold price slipped around one percent on Wednesday amid strengthening US dollar, as the prevalent risk sentiment remains the main market driver amid the Russia-Ukraine war.

As of 1440 hours GMT on Wednesday, gold in the international market was available at $1,930.40 per ounce, shedding $14.90. Out of a $14.90 per ounce decrease, -$4.85 was due to the dollar’s strengthening and -$10.05 was due to predominant sellers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, increased to Rs110,300 after gaining Rs800. Gold in the local market was available at Rs109,500 on Tuesday last. The local prices increased due to overnight increase in gold prices internationally when the local market was closed. Moreover, depreciation of the Pakistani rupee against the US dollar during the day also surged the gold prices.

According to experts, gold price appears choppy but within a familiar range above the $1,900 mark amid prevalent risk sentiment. They said that uncertainty over the timing of another round of peace talks, soaring oil prices and global growth worries continue to sap investors’ confidence, diverting the safe-haven flows into the US dollar.

They said that while the Russia-Ukraine war underpins the metal’s safe-haven demand, the recent rebound of the US dollar seems to have tested the bullion bulls of late.

From a technical perspective, the gold price has found solid support at $1,931 and if the latter gives way on selling resurgence, then the $1,928 level could come to the immediate rescue of gold bulls. The additional declines will find support at the $1,919 level, which may help limit the downside.

On the flip side, strong resistance is aligned at $1,936 and gold bulls need a sustained break above $1,939 to resume the upside towards the $1,950 level. Ahead of that psychological barrier, the previous day’s high of $1,946 could be tested.