ISLAMABAD
\nAfter closing the last week on a negative note at $1,783.60 per ounce in the international market following a decrease of $9.20 (-0.51 percent), gold is expected to remain slightly bearish in the near term.
\nThe price of 10 grams of yellow metal in Pakistan decreased from Rs101,700 to Rs101,400 during the last week, showing a decrease of 0.29 percent. The difference in depreciation in gold price in the local and international markets was due to depreciation of the local currency against the US dollar, which depreciated by 0.75 percent against the greenback during the week, with the dollar opening at Rs175.46 on Monday last and closing at Rs176.77 on Friday last.
\nFrom a technical view, gold\u2019s daily chart shows that Friday\u2019s price action is forming a bullish engulfing candle pattern, with an upside implication; nevertheless, a daily close above $1,780 is necessary to confirm its validity. In that outcome, the first resistance would be the confluence of the 200, 50, and 100-day moving averages (DMAs) lying at $1,791.01, $1791.41, and $1,790.63, respectively. A breach of the latter could propel gold prices higher due to the importance of the $1,790-92 area. The next resistance would be the $1,800, followed by the September 3 high at $1,834.
\nOn a flip side, the first support would be the December 3 cycle low at $1,761.99. The breach of the latter would expose crucial support levels, as the October 6 low at $1,745.72, followed by the September 29 low at $1,721.52.
\nDuring the last week, gold started the week under modest bearish pressure and closed in negative territory on Monday and Tuesday. Following an uninspiring recovery attempt toward $1,800 on Wednesday, gold struggled to hold its ground and touched its lowest level in a month at $1,761. Although the disappointing November jobs report from the US triggered a rebound initially on Friday, gold failed to attract buyers and finished the third straight week deep in the red.
\nGold dominated the financial markets ahead of the weekend amid renewed fears over the omicron variant causing a slowdown in global economic activity. The market mood improved at the start of the week, however, with confirmed omicron cases in Europe and the UK showing mild symptoms, the yellow metal couldn\u2019t find demand as a safe haven and US Treasury bond yields edged higher.
\nOn Tuesday, markets, once again, turned risk-averse after the CEO of Moderna said that current vaccines were likely to be ineffective against the new variant and added that it would take \u201cmonths before pharmaceutical companies can manufacture new variant-specific jabs at scale.\u201d Gold managed to stage a decisive rebound and climbed above $1,800. However, FOMC Chairman Jerome Powell\u2019s hawkish remarks provided a boost to the greenback and forced gold to erase its daily gains.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD After closing the last week on a negative note at $1,783.60 per ounce in the international market following a decrease of $9.20 (-0.51 percent), gold is expected to remain slightly bearish in the near term. The price of 10 grams of yellow metal in Pakistan decreased from Rs101,700 to Rs101,400 during the last week, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-231238","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n