ISLAMABAD
Gold price inched up in the international market on Tuesday amid a leg down in the US Treasury bond yields.
Gold in the international market was available at $1,828.30 per ounce at 1250 hours GMT after gaining $3.30. Gold touched a fresh two-month high around $1,825 during the trading.
Meanwhile, the price of 10 grams of yellow metal in Pakistan surged to Rs100,600 on Tuesday with an increase of Rs1,100. Gold in the local market was available at Rs99,500 per 10 grams on Monday. The relatively higher increase in the gold price in the local market was due to depreciation of the Pakistani rupee against the US dollar, which depreciated by 0.65 percent, as well as overnight increase in the gold price when the local market was closed.
From a technical perspective, the yellow metal seems poised to challenge the $1,832-34 supply zone. Some follow-through move towards testing a strong barrier, around the $1,832-34 heavy supply zone, remains a distinct possibility.
On a flip side, the latest leg down in gold price is seen testing strong bids at $1822. The immediate downside is guarded by the confluence of the previous week’s high at $1818. If the selling momentum intensifies, then powerful support around $1815 will be put to test. That level is the intersection of the previous month’s high, pivot point one-month R1 and pivot point one-day S1. Further south, the Fibonacci 23.6% one-week at $1805 will come into play.
According to experts, the gold price continues to remain underpinned by the market uncertainty over the next policy move by the Federal Reserve. The bright metal remains at the mercy of the dynamics in the US dollar and the Treasury yields, as investors await the US inflation data for the next direction in gold price.
