Daily Times

Gold price increased during a volatile session amid two-way price move on Thursday. As of 1350 hours GMT, gold in the international market was available at $2,004.70 per ounce, gaining $13.40. Out of a $13.40 per ounce increase, +$0.25 was due to the dollar’s strength and +$13.65 was due to predominant buyers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, decreased to Rs115,600 with a decrease of Rs600. Gold in the local market was available at Rs116,200 on Wednesday last. The local prices decreased due to overnight decrease in gold prices internationally when the local market was closed.

According to experts, a sudden wave of optimism hit gold price hard during the early trade after Ukraine said it is ready for a comprise if Russia shows the same intent. However, the markets went back to square one later, as the Ukraine crisis is unlikely to get over any time soon, they added. They said that heightened uncertainty could likely keep a floor under gold price.

They said that following a sharp decline a day earlier, gold staged a recovery on Thursday and traded above the $2,000 psychological level. The risk-averse market environment is helping the yellow metal find demand, they further said, adding volatility is likely to remain sky-high amid the peace talks, with wild swings in either direction likely on the table.

Meanwhile, UBS Group AG, a Swiss multinational investment bank and financial services company, expects gold price to stabilise around $1,950 by June before reversing back lower towards the $1,800 level by end-2022. “We have lifted our gold forecasts given its hedging attributes during periods of elevated uncertainty, with the precious metal projected at $1,950/oz by June before easing to $1,800/oz by year-end,” said the firm.