Daily Times

Gold price inched down on Friday amid a rise in the benchmark 10-year US treasury bond yield as well as tightened labour market conditions in the United States. As of 1345 hours GMT, gold in the international market was available at $1,932.10 per ounce, shedding $5.10 (-0.26 percent). Out of a $5.10 per ounce decrease, -$5.40 was due to the strengthening dollar and +$0.30 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 Rs114,600 after gaining Rs1,100. Gold price in the local market settled at Rs113,500 on Thursday last. An increase in the local gold price was due to overnight decrease 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.

Amid soaring inflation and worries about a looming recession, the US economy added slightly fewer jobs than expected in March as the labour market grew increasingly tighter. Nonfarm payrolls expanded by 431,000 for the month, while the unemployment rate was 3.6 percent, the US Bureau of Labour Statistics reported Friday.

On the other hand, the incoming geopolitical headlines have so far failed to ease market worries about the possibility of a further escalation in the Russia-Ukraine conflict. Ukraine’s President Volodymyr Zelensky warned that Russia is consolidating and preparing powerful strikes in the country’s south, including besieged Mariupol. This, in turn, was seen as a key factor that extended some support to the safe-haven metal. Investors, however, seemed optimistic about the possibility of a diplomatic solution to end the war.

From a technical perspective, the $1,925 seems to protect the immediate downside ahead of the support level at $1,914. Any meaningful slide below the second support level might continue to find decent support near the psychological $1,9o0 level. On the flip side, the gold price is looking to find acceptance above $1,950, which was the overnight high. Sustained strength beyond might trigger a short-covering move and push gold prices to an intermediate hurdle at $1,964.