Gold price went down by around 1.35 percent due to rebound in the US Treasury yields on Friday. After remaining high for three consecutive days. Gold in the international market was available at $1,771.90 per ounce after shedding $25.30 at 1235 hours GMT.
Meanwhile, the price of 10 grams of yellow metal in Pakistan decreased to Rs97,600 after shedding Rs1,400. Gold in the local market was available at Rs99,000 per 10 grams on Thursday. According to experts, gold price is reversing from monthly highs just ahead of the $1,800 mark. As the US dollar rebounds in tandem with Treasury yields amid the upbeat market mood. Robust US corporate earnings douse fears over growing inflation risks. Boosting the investors’ sentiment at the expense of the safe-haven gold.
Meanwhile, failure to find a hold above the $1,800 mark pushes gold price lower, as traders await the US consumer-centric data for a decisive move in the bright metal. They said that from current levels, any subsequent decline is likely to find decent support near the $1,770. Sustained weakness below might prompt some technical selling and drag spot prices back towards the $1,750 static support.
A convincing break below will shift the bias back in favour of bearish traders. And turn gold vulnerable to retest September monthly swing lows around the $1,722-21 zone. On the flip side, bulls are likely to wait for a sustained strength above the $1,800 mark before placing fresh bets. Gold might then accelerate the momentum further towards the $1,816-18 intermediate hurdle before eventually darting towards the $1,832-34 heavy supply zone.
Kamran Nazir Malik is a law graduate and master in Economics. He is associated with TLTP News Wire Service as correspondent since 2018.