Gold slips to Rs102,100 per 10gm as $ weakens

ISLAMABAD: Gold prices inched up on Wednesday, strengthening its two-day relief recovery amid a weaker US dollar.
As of 1415 hours GMT, gold in the international market was available at $1,803 per ounce, gaining $2.20. Out of $2.20 per ounce gain, $5.7 was due to the dollar’s weakness while the price went down by -$3.50 due to predominant sellers.
The price of 10 grams of yellow metal in Pakistan, meanwhile, decreased to Rs102,100 after shedding Rs400. Gold in the local market was available at Rs102,500 on Monday last. A decrease in the local gold prices was due to overnight downward change in the international prices when the local market was closed. Moreover, the Pakistani rupee made some gains against the US dollar during the last four days, which also impacted local prices negatively.
Meanwhile, the benchmark 10-year US Treasury bond yield went down nearly one percent during the day. The risk-on flows-driven US dollar’s demise and retreating Treasury yields are helping put a floor under gold price.
From a technical perspective, the gold price is challenging the $1,802 level on renewed upside. That is the point where the SMA-50 one-day also hangs around. If that level is cleared decisively, then bulls will look out for the 200-day SMA at $1,806. The next powerful resistance aligns at $1,809, which is the previous day’s high. Further up, the 200-4hr SMA at $1,812 will be the level to beat for gold bulls.
On the flip side, the immediate downside support is seen at $1,797. Sellers will then target $1,795, where the 100-day SMA and the previous day’s low meet. A sharp drop towards $1,789 cannot be ruled out on a breach of the latter. – TLTP