Daily Times

Spot gold prices regained some poise on Tuesday after falling sharply below the $1900 level on Monday amid a stronger US dollar.

As of 1245 hours GMT, gold in the international market was available at $1,903.10 per ounce, gaining $4.70 (+0.25 percent). Out of the $4.70 per ounce increase, -$3.75 was due to strengthening of the US dollar and +$8.45 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 Rs113,700 after shedding Rs300. Gold price in the local market settled at Rs114,000 on Monday last. The reverse change in local gold prices was due to overnight change in the gold prices when the local market was closed. According to experts, the bearish potential remains intact for gold, as the US dollar holds near two-year highs versus its main rivals. Markets remain cautious and prefer to seek refuge in the US currency amid rising worries over the Federal Reserve’s aggressive tightening stance and Beijing’s Covid-19 lockdown, which may hit the global economic recovery.

From a technical perspective, gold price is stuck in a narrow range despite the rebound, as the $1,906 level limits the immediate upside. If that level is scaled, then bulls need to yield a decisive break above $1,909. The next stop for gold bulls is envisioned at $1,918. On the flip side, the immediate support line is seen at $1,900. If bears take out that downside cap, then a retest of the daily lows at $1,896 will be inevitable. Monday’s low of $1,892 will be next on the sellers’ radars. The line in the sand for gold buyers is the previous month’s low at $1,890.