Daily Times

Gold price edged lower on Friday after surging for two consecutive days, as the US treasury bond yield remained elevated.

As of 1320 hours GMT, gold in the international market was available at $1,951.70 per ounce, shedding $5.20. Out of a $5.20 per ounce decrease, +$0.65 was due to the dollar’s weakness and -$5.85 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 Rs114,300 after gaining Rs500. Gold price in the local market settled at Rs113,800 on Thursday last. An increase in the local gold price was due to overnight increase in the prices globally when the local market was closed. Moreover, the rupee’s depreciation against the US dollar also impacted the local prices negatively.

According to experts, gold prices consolidated the upside amid indecisive markets after two straight days of gains. They said that investors are awaiting a clarity on the Russia-Ukraine crisis amid ongoing hostilities in Ukraine and a stronger Western response on Russia. They said that volatility in gold prices could briefly return amid inflation and geopolitical developments.

From a technical perspective, the gold price is looking to find acceptance above $1,960, the previous year’s high, which seems to be the first resistance level. Gold bulls will then target the previous day’s high of $1,966, with the $1,970 round level next in sight. The previous month’s high of $1,975 will be the level to beat for bulls. If bulls manage to clear decisively this level, the momentum could then push gold towards the key $2,000 psychological mark.

On the flip side, the $1,949 seems to protect the immediate downside ahead of the support level at $1,942. The previous day’s low at $1,937 will challenge the bullish commitments should the downside pick up steam. Sustained weakness below will reaffirm the negative bias and drag gold prices towards the next relevant support of March 22 lows of $1,910.