Daily Times

Gold price inched up on Wednesday despite surging US treasury bond yield, as uncertainties over the outcome of the Russia-Ukraine peace talks favoured the yellow metal. As of 1220 hours GMT, gold in the international market was available at $1,926.10 per ounce, gaining $2.90 (+0.15 percent). Out of the $2.90 per ounce increase, +$2 was due to the weakening dollar and +$0.90 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 Rs115,300 after gaining Rs100. Gold price in the local market settled at Rs115,200 on Tuesday last. Relatively higher increase in local gold prices was due to overnight change in the prices when the local market was closed. Moreover, the weakening rupee against the US dollar also impacted the prices negatively.

The US Dollar Index, which gauges the greenback against a basket of its main competitors, rose to as much as 99.640 in early trade on Wednesday, its highest since May 2020, before steadying slightly lower. In the meantime, the US treasury bond yields resumed the upside albeit at a gradual pace amidst increasing cautiousness among investors following the recent inversion of the US yield curve.

Gold price is trading modestly flat, reversing a dip to six-day lows of $1,915. Concerns over the new Russian sanctions and China’s Covid-19 surge are weighing heavily on the market sentiment, in turn, reviving the safe-haven demand for gold price.

From a technical perspective, the Relative Strength Index (RSI) is oscillating in a 40.00-60.00 range, which signals a consolidation ahead. The $1,910 level seems to protect the immediate downside ahead of the $1,9o0 psychological level.

On the flip side, the gold price is looking to find acceptance above $1,930, which was the overnight high. Sustained strength beyond might trigger a short-covering move and push gold prices to an intermediate hurdle at $1,945.