Gold surges by Rs1,300 to Rs115,200 per 10gm

ISLAMABAD: Gold price inched up on Tuesday amid uncertainties over the outcome of the Russia-Ukraine peace talks and a weak US dollar.
As of 1255 hours GMT, gold in the international market was available at $1,934.20 per ounce, gaining $1 (+0.05 percent). Out of the $1 per ounce increase, +$0.65 was due to the weakening dollar and +$0.35 was due to predominant buyers, according to Kitco Gold Index.
The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, increased to Rs115,200 after gaining Rs1,300. Gold price in the local market settled at Rs113,900 on Monday last. The massive increase in local gold prices was due to overnight change in the prices when the local market was closed. Moreover, the weakening rupee against the US dollar also impacted the prices negatively.
Gold remained under the pressure of rising US yields. Expectations that the Fed would tighten its monetary policy at a faster pace to rein in inflationary pressures remained supportive of elevated US Treasury bond yields. The yellow metal is bid above the $1900 mark as the war uncertainties keep the safe haven demand tight.
Gold struggled to capitalise on the overnight recovery move from the four-day low. Medium-term risks remain tilted to the downside as even a risk selloff may not easily benefit gold, if the selloff is due to rising US bond yields. Yet, renewed geopolitical tensions boost appetite in gold, and the fact that the West prepares to announce new sanctions against Russia on horrifying images of attacks against civilians should throw a floor under a selloff below the $1900 in the short run.
From a technical perspective, the $1,930 seems to protect the immediate downside ahead of the support level at $1,914. Any meaningful slide below the second support level might continue to find decent support near the psychological $1,9o0 level.
On the flip side, the gold price is looking to find acceptance above $1,950, which was the overnight high. Sustained strength beyond might trigger a short-covering move and push gold prices to an intermediate hurdle at $1,964. – TLTP

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