Daily Times

Gold price edged down slightly for the second consecutive day on Thursday amid strengthening US dollar. As of 1405 hours GMT, gold in the international market was available at $1,925.40 per ounce, shedding $3.30. Out of a $3.30 per ounce decrease, -$4.05 was due to the dollar’s strengthening and +$0.75 was due to predominant buyers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, increased to Rs110,400 after gaining Rs100. Gold in the local market was available at Rs110,300 on Wednesday 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, the gold price has extended its range around the $1,930 level for the third consecutive day. They said the Russia-Ukraine crisis has revived gold’s demand as a safe haven. On the other hand, the US dollar continues to gain strength amid an expected hike in interest rate by 50bps.

Strategists at Credit Suisse expect the yellow metal to close the week above $1,917/23 which would raise the prospect of a move back to the $2,075 record high. “Gold is struggling to see a weekly close above the June 2021 high and retracement resistance at $1,917/23 but our bias stays higher for this to eventually be achieved to add momentum to the rally to confirm a base has indeed been established to raise the prospect of a move back to the $2075 record high,” they said.

From a technical perspective, the gold price has found solid support at $1,922 and if the latter gives way on selling resurgence, then the $1,915 level could come to the immediate rescue of gold bears. 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 $1,933 and gold bulls need a sustained break above this level to resume the upside towards the $1,937 level. Ahead of that psychological barrier, the previous Tuesday’s high of $1,946 could be tested.