Gold sheds Rs900/10gm ahead of Fed meeting

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ISLAMABAD: Gold price inched down on Tuesday despite a subdued US dollar amid a sell-off in the shorter-duration Treasury yields.
Gold in the international market was available at $1,791.60 per ounce after shedding $2.90 at 1525 hours GMT.
Meanwhile, the price of 10 grams of yellow metal in Pakistan decreased to Rs98,000 on Tuesday with a decrease of Rs900. Gold in the local market was available at Rs98,900 per 10 grams on Monday last. The relatively higher depreciation in the gold price in the local market as compared to the international market was due to devaluation of the US dollar against Pakistan rupee during the day as well as overnight dip in the price of yellow metal when the local market was closed.
According to experts, gold is moving back and forth in a narrow range, holding onto the previous recovery gains amid a cautious market mood, as the US Federal Reserves may announce tapering on Wednesday. They said that the pre-Fed anxiety and the dynamics in the Treasury yields will continue to impact the gold prices.
From a technical perspective, gold is looking to recapture the previous day’s high of $1,796 on its upward march. Immediate upside barrier appears at $1798 and acceptance above the latter will fuel a sharp rally towards $1805. Further up, the previous week’s high of $1810 will be the level to beat for gold bulls.
On the flip side, gold is trading at present at the SMA200 one-day at $1,792, which is capping any further pull-back in gold price. The next strong supports await at $1789 and $1786. The SMA50 one-day at $1782 is the last line of defence for gold buyers. – TLTP