ISLAMABAD
\nGold prices slipped for the third straight day, easing from a fresh one-week high of $1,829 during the early trading.
\nAs of 1315 hours GMT on Friday, gold in the international market was available at $1,820.10 per ounce, shedding $2.10. Gold erased a large portion of its daily gains after advancing toward $1,829 earlier in the day. The benchmark 10-year US Treasury bond yield increased over 1.5 percent during the day, limiting gold\u2019s upside.
\nThe price of 10 grams of yellow metal in Pakistan went down to Rs102,900 after shedding Rs300. Gold in the local market was available at Rs103,200 per 10 grams on Thursday. A relatively higher decrease in the local gold prices was due to the Pakistani rupee\u2019s appreciation by 0.18 percent (31 paisas) against the US dollar during the day.
\nFrom a technical perspective, the 14-Relative Strength Index (RSI) holds well above the midline while the 21-Daily Moving Average (DMA) has crossed the 50-DMA for the upside, bolstering the bullish potential. The immediate support is pegged around the $1,815-12 level. Hence, any further pullback is more likely to attract fresh buying and remain limited near the $1,808 mark, which is a confluence of the 21- and 50-day moving average. Failure to defend this level might prompt some technical selling and accelerate the fall towards the $1,803 level.
\nOn the flip side, bulls are likely to aim back to test a static resistance near the $1,830-32 region, where the previous week\u2019s high and monthly highs coincide. A sustained strength beyond would gold prices towards the next relevant hurdle near the $1,838. The momentum could further get extended towards the $1,850 mark if the gold closes the week above $1,838 mark.
\nAccording to the World Gold Council, the precious metal will likely face two key headwinds of higher nominal interest rates and a potentially stronger dollar this year. However, the negative effect from these two drivers may be offset by other supporting factors, such as persistent inflation, market volatility linked to Covid-19 and robust demand from other sectors such as central banks and jewellery, the industry body said in a 2022 market outlook report.
\nGold prices declined more than 4 percent in 2021 after rising 48 per cent over the previous two years as the global economic recovery reduced demand for the safe-haven metal. \u201cGold has historically underperformed in the months leading up to a Fed tightening cycle, only to significantly outperform in the months following the first rate hike,\u201d the WGC said.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Gold prices slipped for the third straight day, easing from a fresh one-week high of $1,829 during the early trading. As of 1315 hours GMT on Friday, gold in the international market was available at $1,820.10 per ounce, shedding $2.10. Gold erased a large portion of its daily gains after advancing toward $1,829 earlier […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":{"0":"post-238888","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n