Daily Times

Gold price inched up on Friday as the souring market mood amid heightened recession fears and a protracted Russia-Ukraine conflict helped the yellow metal find demand.

As of 1445 hours GMT, gold in the international market was available at $1,948.70 per ounce, gaining $2 (+0.10 percent). Out of the $2 per ounce increase, -$2.30 was due to stronger dollar and +$4.30 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 Rs114,600 after shedding Rs200. Gold price in the local market settled at Rs114,800 on Friday last. A decrease in local gold prices was due to strengthening rupee against the US dollar. The State Bank of Pakistan said that the dollar opened at Rs184.68 in the interbank market and closed at Rs182.93 after losing Rs1.75 (+0.90 percent).

According to experts, gold attracted some follow-through buying, as investors remained concerned about the potential economic fallout from the war in Ukraine, which was evident from a generally weaker tone around the equity markets. This, in turn, continued benefitting traditional safe-haven assets and pushed spot prices higher, taking along some short-term trading stops near the $1,950 level. Apart from this, worries that the recent surge in commodity prices put upward pressure on the already high consumer prices further bolstered the commodity’s appeal as a hedge against rising costs.

From a technical perspective, the bulls need a decisive close above $1,958 to kick start a fresh uptrend. Sustained strength beyond this resistance might trigger a short-covering move and push gold prices to an intermediate hurdle at $1,966, which was the March 23 high and if it is cleared, it should pave the way for additional near-term gains. On the flip side, the gold price enjoys strong support at $1,940. A daily closing below $1,934 could negate prospects for any further near-term appreciating move.