Gold prices remained on the front foot on Monday and came close to $2,000 level amid retreating US Treasury bond yield.
As of 1415 hours GMT, gold in the international market was available at $1,992.20 per ounce, gaining $18 (+0.91 percent). Out of the $18 per ounce increase, -$1.60 was due to strengthening of the US dollar and +$19.60 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 Rs116,500 after gaining Rs1,000. Gold price in the local market settled at Rs115,500 on Saturday last.
Easter Monday-induced thin market conditions offered some extra zest to gold bulls. Meanwhile, the Ukraine crisis-led surging global inflation is prompting investors to seek refuge in the inflation-hedge gold price. Buyers ignored the notable strength in the US dollar alongside the treasury yields, as a flight to safety made the traditional store of gold more appealing.
Moreover, China’s Covid lockdowns and a potential European Union (EU) embargo on Russian gas could likely intensify inflation and growth concerns. This was seen as another factor that boosted the metal’s appeal as a hedge against rising costs.
From a technical perspective, the 20- and 50-Exponential Moving Averages (EMAs) are scaling higher, adding to the upside filters. The Relative Strength Index (RSI) (14) has overstepped 60, which indicates a firmer bullish momentum going forward.
The bulls need a decisive close above $2,000 psychological level 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 $2,014, and if it is cleared.
On the flip side, the gold price enjoys strong support at $1,974, which is the previous day’s closing point. Next support level lies around $1,966. A daily closing below $1,958 could negate prospects for any further near-term appreciating move.
Foreign Office (FO) spokesperson Mumtaz Zahra Baloch on Thursday dismissed speculations that US president-elect Donald…
Federal minister for Interior Mohsin Naqvi visited the Chinese Embassy in Islamabad following an incident…
US President Joe Biden delivered remarks to the nation on Thursday after a stinging election…
The federal government increased the salaries and allowance of superior judiciary judges, according to a…
Electricity prices likely to be reduced by up to Rs8 per unit for three months…
Security forces have killed five terrorists during a fire exchange in the South Waziristan district…
Leave a Comment