Gold slips to Rs99,300 per 10gm

ISLAMABAD: Gold price edged up in the international market on Thursday amid a weaker US dollar.
Gold in the international market was available at $1,806.40 per ounce after gaining $8.40 at 1325 hours GMT. Meanwhile, the price of 10 grams of yellow metal in Pakistan dipped to Rs99,300 with a decrease of Rs600. Gold in the local market was available at Rs99,900 per 10 grams on Wednesday last. The decrease in gold price in the local market was due to appreciation of Pakistan rupee against the US dollar, which has recovered Rs3.01 against the greenback during the last two days.
According to experts, gold built on the previous day’s rebound from the vicinity of weekly lows and edged higher. The momentum pushed the gold back above the $1,800 mark, though a combination of factors might keep a lid on any meaningful upside. A generally positive tone around the equity markets could act as a headwind for the safe-haven precious metal.
Apart from this, a solid rebound in the US Treasury bond yields, along with expectations for an early policy tightening by major central bank might further collaborate to cap gains for the non-yielding yellow metal. They said the yellow metal recovered the previous day from the weekly bottom as the US dollar faded the bounce off a one-month low, tracking the US Treasury yields.
From a technical perspective, gold keeps moving inside the ascending channel. It has surged above the psychological mark of $1800. If gold edges higher to the high of October 25 at $1810 and manages to jump above this resistance level, the metal will rocket to the next round number of $1820. On the other hand, support levels are the last day’s closing price at 1,798, 200-day moving average of $1792 (which also lies at the lower line of the channel) and the 50-day moving average of $1780. – TLTP