Daily Times

Gold price surged on Thursday as a weaker US dollar and 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 $1,933 per ounce, gaining $7.70 (+0.40 percent). Out of the $7.70 per ounce increase, +$1.85 was due to the weakening dollar and +$5.85 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 Rs117,100 after gaining Rs1,800. Gold price in the local market settled at Rs115,300 on Wednesday last. A relatively higher increase in local gold prices was due to weakening rupee against the US dollar.

Gold price has been treading modestly flat for the last two days, after 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.

The escalating Russia-Ukraine conflict, with the West punishing Russia with more sanctions, helped provide a floor under gold price. Gold traders await clarity on the Ukraine crisis for a fresh direction. In the meantime, the treasury bond yields’ price action could play a pivotal role in influencing gold price. From a technical perspective, the gold price is looking to find acceptance above $1,939. Sustained strength beyond this resistance might trigger a short-covering move and push gold prices to an intermediate hurdle at $1,945.

On the flip side, the gold price is lacking a clear directional bias and enjoys strong support at $1,930. A daily closing below $1,925 is needed to yield a sustained move lower. The $1,910 level seems to protect the immediate downside ahead of the $1,9o0 psychological level.