Daily Times

Gold price jumped to a fresh multi-week high on Tuesday as the US consumer inflation topped 8 percent in March for the first time in more than four decades. As of 1425 hours GMT, gold in the international market was available at $1,966.50 per ounce, gaining $12.40 (+0.63 percent). Out of the $12.40 per ounce increase, +$0.60 was due to the weakening dollar and +$11.80 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 Rs116,700 after gaining Rs2,100. Gold price in the local market settled at Rs114,600 on Monday last. A relatively higher increase in local gold prices was due to overnight increase in gold prices globally when the local market was closed.

According to experts, a combination of supporting factors pushed spot gold to a fresh multi-week high on Tuesday. The US CPI accelerated to 8.5 percent and boosted the metal’s appeal as a hedge against inflation. Retreating US Treasury bond yields prompted some dollar profit-taking and further extended support. A modest US dollar weakness also benefited the dollar-denominated commodity.

From a technical perspective, the bulls need a decisive close above $1,980 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 $1,992, and if it is cleared, it should pave the way to break the psychological barrier of $2,000.

On the flip side, the gold price enjoys strong support at $1,954, which is the previous day price closing point. Next support level lies around $1,945. A daily closing below $1,934 could negate prospects for any further near-term appreciating move.