ISLAMABAD: Gold prices edged up on Tuesday as the US Treasury yields stabilised at higher levels, aiding the yellow metal’s upside. Gold in the international market was available at $1,799.70 per ounce after gaining $7.40 at 1330 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, slipped to Rs102,900 after losing Rs100. TLTP
The drop in local price was due to overnight change in the international prices, as gold ended the session lower a day earlier, when the local market was closed.
Gold prices also rebounded as the US dollar remained on the back foot. However, investors remain wary and refrain from placing aggressive bets amid looming concerns over the Omicron Covid variant contagion and its impact on the global economic recovery. Gold price seems to remain at the mercy of the broader market sentiment.
According to experts, the yellow metal responded surprisingly well to the Fed’s announcement of a more aggressive pace of tapering and rate hikes next year. Gold rose almost $40 from Wednesday to Friday last week, jumping again above the key level of $1,800.
According to the experts, the gold price remains buoyed by the risk-off market profile. Uncertainties surrounding the Omicron variant of the coronavirus sap investors’ confidence.
From a technical perspective, the gold price is likely to challenge strong resistance around $1,800 on its road to recovery. If thsi level is taken out convincingly, then gold bulls will look to retest the previous day’s high at $1,804. Fresh buying opportunities will emerge on a break above the previous day’s high to $1,810. The previous week’s high of $1,814 will be the level to beat for gold buyers.
On the flip side, strong support awaits at $1,792, below which the level of $1,788 will be put to test. Sellers will then target a $1,786 demand area.
