Daily Times

Gold futures continued their winning streak for the sixth successive session on Tuesday amid falling treasury bond yields.

As of 1235 hours GMT, gold in the international market was available at $1,854.90 per ounce, gaining $1.40 (+0.08 percent). Out of the $1.40 per ounce increase, -$0.35 was due to strengthening of the US dollar and +$1.75 was due to predominant buyers, according to Kitco Gold Index. The price of 10 grams of 24-carat yellow metal in Pakistan, decreased to Rs120,400 after shedding Rs1,000. Gold price in the local market remained Rs121,400 on Monday last. A decrease in the local gold prices was due to overnight downward change in gold prices when the local market was closed. However, Pakistani rupee’s continuous depreciation against the US dollar during these days trimmed most of the fall for local purchasers. The local unit has depreciated by 7.22 percent during the last two weeks. Gold Price is heading back towards the highest levels in two weeks, as bulls continue to draw support from the falling US Treasury yields across the curve. Risk-aversion remains at full steam, which drives the safe-haven demand into the US government bond. This, in turn, weighs down on the Treasury yields, aiding the upside in the non-yielding gold. Moreover, the bright metal also capitalised on a broadly subdued US dollar. The greenback came under renewed selling pressure after the EUR/USD pair rebounded sharply on the latest hawkish comments from ECB President Christine Lagarde. Brewing geopolitical tensions between the US and China over Taiwan is also boding well for the traditional safe-haven gold. From a technical perspective, a daily closing above the 21-daily moving average of $1,857 is needed to confirm a bullish reversal, exposing the additional upside towards the mildly bullish 100-DMA at $1,885. Ahead of that the $1,870 round figure could challenge the bearish commitments. On the flip side, the immediate support is seen at the $1,850 psychological level. Sellers will then look out for the horizontal flattish 200-DMA at $1,839. Acceptance below the latter may trigger a fresh downswing towards the $1,800 mark.