Daily Times

Gold price snapped a two-day winning streak on Friday as a strengthening US dollar did not allow the yellow metal to gain traction. As of 1315 hours GMT, gold in the international market was available at $1,931.30 per ounce, shedding $11.10. Out of a $11.10 per ounce decrease, -$11.85 was due to the dollar’s strength 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, decreased to Rs112,200 after shedding Rs200. Gold in the local market was available at Rs112,400 on Thursday last. The Pakistani rupee depreciated 0.28 percent against the US dollar during the day, which trimmed the overall decrease in the local gold prices.

According to experts, the gold price is much more dependent on the developments surrounding the Russia-Ukraine conflict. Peace talks between both sides are reportedly showing little progress, and the situation is re-igniting risk-aversion. The US dollar is once again seeing fresh safe haven demand, which is exerting downward pressure on gold price. Moreover, recent increases in the benchmark 10-year US Treasury bond yield is also benefiting the dollar at gold’s expense.

From a technical perspective, the gold price has a strong support at $1,929, which seems to protect the immediate downside. The next support levels for gold bears are seen at $1,926 and $1,923, the latter is the previous day’s low. A sustained drop below the latter will fuel a sharp sell-off towards $1,912.

On the flip side, if bulls regain control then the immediate resistance lies at $1,937. The next significant resistance is seen at $1,940, above which the $1,945 level will be tested. If the bulls come over this resistance, they will then face resistance at $1,950, which is the previous day’s high.