Gold falls to Rs115,800 per 10g

Author: Monitoring Desk

Gold prices extended its four days’ retracement slide on Friday amid a stronger US dollar and surging treasury bond yields. As of 1425 hours GMT, gold in the international market was available at $1,942.90 per ounce, shedding $9 (-0.46 percent). Out of the $9 per ounce decrease, -$7.35 was due to strengthening of the US dollar and -$1.65 was due to predominant sellers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, increased to Rs115,800 after shedding Rs400. Gold price in the local market settled at Rs116,200 on Thursday last. The reverse change in local gold prices was due to falling rupee against the US dollar. During the last five days, the rupee has shed Rs5.15 against the US dollar and slipped to 186.70 from 181.55.

According to experts, gold came under some renewed selling pressure and dropped to a near two-week low, around the $1,930 region during the early trading. The speech from Federal Reserve Chairman Jerome Powell at an International Monetary Fund event sounded extremely hawkish and it confirmed a 50 bps rate hike at the upcoming policy meeting on May 3-4. This was evident from an extended selloff in the US fixed income market, which pushed the US Treasury bond yields back closer to the multi-year high and weighed on the non-yielding yellow metal. The benchmark 10-year US treasury yields climbed back towards the key 3 percent level on the hawkish rhetoric and the real interest rate turned positive for the first time in two years.

From a technical perspective, the immediate support line is seen at the previous week’s low of $1,940, below which the SMA50 one-day at $1,935 will come into play. Further down, $1,928 could get tested on selling resurgence. The next downside cap awaits at $1,924. On the flip side, gold price faces first resistance at $1,950, above which $1,956 could come into play. The $1,960 level will be the level to beat for gold buyers.

Share
Leave a Comment

Recent Posts

  • Pakistan

Pakistan vows to bolster security of Chinese workers after Karachi attack

Federal minister for Interior Mohsin Naqvi visited the Chinese Embassy in Islamabad following an incident…

19 seconds ago
  • World

Biden promises ‘peaceful, orderly’ transition to Trump

US President Joe Biden delivered remarks to the nation on Thursday after a stinging election…

49 seconds ago
  • Pakistan

SC judges get massive hike in salaries, allowances

The federal government increased the salaries and allowance of superior judiciary judges, according to a…

2 mins ago
  • Pakistan

Power consumers may get big relief under ‘winter package’

Electricity prices likely to be reduced by up to Rs8 per unit for three months…

2 mins ago
  • Pakistan

4 soldiers martyred, 5 terrorists killed in KP shootout

Security forces have killed five terrorists during a fire exchange in the South Waziristan district…

2 mins ago
  • Pakistan

PM calls for stronger ties with Turkiye in key areas

Prime Minister Shehbaz Sharif on Thursday expressing satisfaction at the growing bilateral cooperation between Pakistan…

10 mins ago