Daily Times

Gold price inched up for the second straight session on Monday as a weaker dollar and falling US Treasury bond yields helped increase demand outlook for greenback-priced bullion. As of 1220 hours GMT, the gold futures were available at $1,854.50 per ounce, showing a gain of $0.40 (+0.02 percent). Out of the $0.40 per ounce increase, +$3.10 was due to weakening of the US dollar and -$2.70 was due to predominant sellers, according to Kitco Gold Index. The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, dipped to Rs118,500, showing a decrease of Rs750. Gold price in the local market remained Rs119,250 on Friday last. A decrease in the local gold prices was due to the Pakistani rupee’s appreciation against the US dollar, which appreciated by 0.35 percent during the day.

Gold price gave a part of its early gains during the intra-day trading but appeared supported amid holiday-thinned market conditions. The US dollar is seeing a dip-buying demand, despite the risk-on trading on global stocks. Investors continue assessing the China Covid easing optimism and subsiding aggressive Federal Reserve’s tightening bets against signs of slowing in the US economy. The European Union Summit on the Ukraine crisis is closely followed, as Russia’s oil embargo is likely to be part of the EU sanctions package. These developments could affect the broader market sentiment, significantly impacting the gold price.

From a technical perspective, $1,860 aligns as first resistance on the upside. In case, gold rises above that level and starts using it as support, it could target $1,864. A sustained move above the latter will see a fresh advance towards the previous week’s high of $1,870. On the flip side, $1,850 forms first support ahead of $1,840, which is the previous week’s low. Only a daily close below $1,840 may attract sellers and cause the near-term technical outlook to turn bearish. In such a scenario, $1,830 may act as the next line of defence.