ISLAMABAD
Gold prices edged up on Monday despite firm US Treasury bond yields and a strong dollar due to Russia-Ukraine tension.
As of 1345 hours GMT, gold in the international market was available at $1,862.20 per ounce, gaining $3.20. Out of $3.20 per ounce increase, -$4.55 was due to the dollar’s strength while the price went up by +$8.15 due to predominant sellers.
The price of 10 grams of yellow metal in Pakistan, meanwhile, increased to Rs104,700 after gaining Rs200. Gold in the local market was available at Rs104,500 on Saturday last. The increase in local gold prices was also due to rupee’s depreciation against the US dollar during the day, which also impacted local prices negatively.
The 10-year US Treasury bond yield went up one percent on Monday, limiting gold’s upside but the risk-averse market environment is allowing the yellow metal to find demand.
Gold price is taking a breather after a blistering $40 rally seen in the last session on Friday, which drove the bright metal to the highest level in three months at $1,866.
Reports about a potential Russian invasion of Ukraine this week roiled markets and triggered a massive flight to safety into gold price. The bullion remains in a win-win situation going forward amid rising inflation concerns as investors watch over the geopolitical risks concerning Ukraine.
From a technical perspective, the Relative Strength Index (RSI) is still above the midline, justifying the latest surge in gold price. On the upside, immediate resistance is seen at the round level of $1,866. Acceptance above this point will fuel a fresh upswing towards $1,878.
On the flip side, gold enjoys strong support at $1,855. If gold falls below this level, then the support of $1,851 will be tested. Further down, $1,848 level will come to buyers’ rescue.
