Gold falls to Rs113,200 per 10g

Author: Monitoring Desk

Spot gold prices fell on Wednesday amid a stronger US dollar. As of 1320 hours GMT, gold in the international market was available at $1,896 per ounce, shedding $9.70 (-0.51 percent). Out of the $9.70 per ounce decrease, -$12.40 was due to strengthening of the US dollar and +$2.70 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 Rs113,200 after shedding Rs500. Gold price in the local market settled at Rs113,700 on Tuesday last. According to experts, the bearish potential remains intact for gold, as the US dollar holds near two-year highs versus its main rivals. They said that gold is attempting a rebound from two-month lows of $1,886. The market mood remains upbeat despite the ongoing EU-Russia energy conflict, in the face of the Ukraine war.

They said the US dollar is pulling back from two-year highs amid the improving sentiment, offering a much-needed respite to gold bulls. The negative sentiment seen around the US Treasury yields also aided the rebound in the non-yielding gold price. Persistent concerns over global growth, China’s lockdowns and more aggressive Federal Reserve rate hikes are likely to keep the demand for the greenback intact, which could limit gold’s rebound.

From a technical perspective, gold price breached the March 29 lows of $1,890 but found bids just above the end-of-February lows near $1,880. Even though gold bounced back towards the $1,900 mark, the 14-day Relative Strength Index (RSI) keeps pointing lower below the midline, suggesting that any recovery attempts are likely to remain shallow.

If bulls succeed in recapturing $1,900 on a sustained basis, then Tuesday’s high of $1,911 could be retested. Further up, the $1,950 psychological level will be closely followed by gold bulls.

On the downside, only a daily closing below the $1,890 support could initiate a fresh downswing towards the February 24 lows of $1,878. Sustained weakness below the latter will expose the rising 100-Daily Moving Average (DMA) at $1,875.

Share
Leave a Comment

Recent Posts

  • World

Biden’s legacy in ruins after Trump triumph

Joe Biden hoped Kamala Harris would salvage his legacy as the man who saved America…

25 seconds ago
  • World

Germany’s Scholz under pressure to call early vote after coalition collapses

Germany's conservative opposition heaped pressure on Chancellor Olaf Scholz's crisis-hit government Thursday to allow for…

31 seconds ago
  • World

Mauritius heads to the polls under wire-tapping cloud

Mauritius votes Sunday in an election overshadowed by a wire-tapping scandal that has rocked the…

2 mins ago
  • World

UK sanctions Russia-backed Wagner group successor

The UK government announced sanctions on Thursday against three private mercenary groups with links to…

3 mins ago
  • World

Australia moves to ban children under 16 from social media

Australia will move to pass new laws banning children under 16 from social media, Prime…

3 mins ago
  • World

Typhoon Yinxing slams into northern Philippines, thousands evacuated

Typhoon Yinxing slammed into the northeast tip of the Philippines on Thursday, uprooting trees and…

3 mins ago