Daily Times

Gold futures snapped a six-day winning streak in a volatile session on Wednesday and retreated after hitting the two-week highs of $1,870 during the session. As of 1335 hours GMT, gold in the international market was available at $1,852.50 per ounce, shedding $13.90 (-0.74 percent). Out of the $13.90 per ounce decrease, -$8.20 was due to strengthening of the US dollar and -$6.70 was due to predominant sellers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, increased to Rs120,600 after gaining Rs200. Gold price in the local market remained Rs120,400 on Tuesday last. An increase in the local gold prices was due to Pakistani rupee’s continuous depreciation against the US dollar during these days. The local unit has depreciated by over 8 percent during the last two-and-a-half weeks. Gold price retreated from two-week highs of $1,870, as tensions mount in the lead-up to the minutes of the Federal Reserve May policy meeting, which is likely to provide fresh hints on the central bank’s tightening path. The broad rebound in the US dollar, despite a cautious market mood, weighed negatively on the bright metal.

From a technical perspective, the gold price is flirting with the $1,855 support area. Failure to resist this area will trigger a fresh drop towards the $1,850 cap, where the previous day’s low and the previous week’s high coincide. Gold sellers will then look out for the $1,845 demand zone. Further down, the SMA200 one-day at $1,839 will be put to test.

On the upside, bullion bulls could face initial resistance at around $1,862 on buying resurgence. The next resistance level is $1,865. The previous day’s high of $1,870 and the previous month’s low of $1,872 will be next on the buyers’ radars.