Daily Times

Gold price fell sharply after Russian President Vladimir Putin said on Friday there has been some progress in Russia’s talks with Ukraine. “There are certain positive shifts, negotiators on our side tell me,” Putin said in a meeting with his Belarusian counterpart Alexander Lukashenko, adding that talks continue “practically on a daily basis.”

As of 1305 hours GMT, gold in the international market was available at $1,973 per ounce, shedding $24.20. Out of a $24.20 per ounce decrease, -$1.10 was due to the dollar’s strength and -$23.10 was due to predominant sellers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, fell to Rs113,500 with a decrease of Rs2,100. Gold in the local market was available at Rs115,600 on Thursday last. The local prices also decreased due to overnight decrease in gold prices internationally when the local market was closed.

According to experts, the benchmark 10-year US Treasury bond yield rose more than 10 percent this week, which also impacted the gold prices. They said that the gold price has been on the defensive. They said that risk-off mood emerged as the main market theme this week amid escalating Russia-Ukraine conflict alongside increased economic pressure from the West on Russia. Hot US inflation aggravated concerns related to stagflation, and the US dollar has outperformed as a safe haven asset, capping the upside potential in gold price, they added.

From a technical perspective, gold price faces immediate resistance at around $1,980. If bulls find a strong foothold above this level, the next bullish target will be pegged at $1,992. The previous day’s high of $2,009 will then be on the sellers’ radars, if they manage to break the psychological level of $2,000.

On the downside, the meeting point of the previous week’s high and the previous day’s low near $1,970 provides immediate support. If this level is broken then $1,962 will come to rescue the gold sellers.

According to experts, despite these relevant support and resistance levels, volatility could prop up on key updates on the Russia-Ukraine crisis. Therefore, wild swings in either direction remain well on the table.