Gold slips to Rs104,300 per 10gm

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ISLAMABAD
The gold prices recovered after taking a dip on Friday, as decreasing US Treasury bond yield ended gold’s correction.
As of 1340 hours GMT, gold in the international market was available at $1,841.70 per ounce, gaining $2.30. The price of 10 grams of yellow metal in Pakistan, meanwhile, decreased to Rs104,300 after shedding Rs100. Gold in the local market was available at Rs104,400 on Thursday. A decrease in the local gold prices was due to 0.14 percent appreciation of Pakistani rupee against the US dollar during the day.
During the earlier trading in the international market, gold extended its downward correction towards $1,828 on Friday after advancing to $1,848, a two-month high, on Thursday. The benchmark 10-year US Treasury bond yield remained in the negative territory, which helped gold to recover losses. The downfall lacked any obvious catalyst and could be solely attributed to some profit-taking amid expectations that the Fed will tighten its monetary policy at a faster pace than anticipated.
From a technical perspective, bulls need to retest the two-month highs – $1848 – before it prepares to take on the November 22 high of $1,849. Daily closing above that level could initiate a fresh uptrend in gold price. The next resistance level lies around $1,860 and some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for an extension of the recent move up.
On the flip side, the $1,840 level seems to act as an immediate support. Any pullback towards the $1,832 might now be seen as a buying opportunity. A convincing break below might prompt some technical selling and accelerate the fall towards the $1,812. The next relevant support is pegged near the very important 200-day SMA, currently at $1,804, ahead of the $1,800 round figure.