Gold price surged for the second straight week by 1.44 percent, finding continuous demand as an inflation hedge and a safe haven. Despite a broad-based US dollar strength and a sharp upsurge witnessed in the Treasury bond yields, gold managed to build on the previous week’s 1.1 percent gains and register its highest weekly close in a month above $1,970. Gold futures closed the week on a positive note in the international market at $1,974.80 from $1,946.70 per ounce, gaining $28.10 on a week-on-week basis. The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, decreased by 0.94 percent (Rs1,100) to Rs115,500 from Rs116,600 during the last week. A decrease in the local gold price was due to the Pakistani rupee’s appreciation against the US dollar, which appreciated by 1.69 percent last week and it also impacted local gold prices. Gold is considered a hedge against inflation and geopolitical risks. However, rising US interest rates will raise the opportunity cost of holding non-yielding bullion and boost the greenback in which it is priced. Also boosting gold’s safe-haven appeal, Russian President Vladimir Putin said on Tuesday last that peace talks with Ukraine had hit a dead end, the strongest signal to date the war could grind on for longer. Gold started last week on a firm footing as the negative shift witnessed in risk sentiment provided a boost to the yellow metal. Fading hopes about Russia and Ukraine reaching a peace agreement, the ongoing coronavirus-related lockdowns in China and inflation fears forced investors to seek refuge. The sharp decline witnessed in the US Treasury bond yields made it difficult for the dollar to find demand. The broad-based selling pressure surrounding the greenback allowed gold to extend its rally to a fresh monthly high of $1,981. However, the bond yields bounced back and the renewed dollar’s strength capped gold’s weekly gains. From a technical perspective, gold closed the last five trading days above the 20-day simple moving average (SMA). Additionally, the Relative Strength Index (RSI) indicator on the daily chart holds near 60, pointing to a bullish tilt in the technical picture. On the upside, $1,990 aligns as first technical resistance. In case gold rises above that level and starts using it as support, it could target $2,000, which is the psychological level, and $2,010, which was the day’s high on March 10. On the flip side, strong support seems to have formed at $1950, which is the 20-day SMA. With a daily close below this level, sellers could take action and drag gold toward $1,930 (50-day SMA) and $1,900 (psychological level).