Home » Featured Blocks » Gold price remains flat at Rs102,100 per 10g – Daily Times

Gold price remains flat at Rs102,100 per 10g – Daily Times

International gold prices remained flat on Monday amid expectation of tightening monetary policy at a fast pace to contain inflation.

Gold in the international market was available at $1,784.70 per ounce after gaining $0.80 at 1410 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, also remained flat at Rs102,100. Gold in the local market was available at the same rate on Saturday last.

According to experts, the headline US CPI accelerated to the highest level since 1982 and acted as a tailwind for the precious metal, which is a proven long-term hedge against rising prices. However, a combination of factors kept a lid on any further gains for gold. They said the markets seem convinced that the US Fed would tighten its monetary policy at a faster pace to contain stubbornly high inflation. This, in turn, continued underpinning the US dollar and capped the upside for the dollar-denominated commodity.

Apart from this, the prevalent risk-on environment further held back traders from placing aggressive bullish bets around the safe-haven gold. Investors also seemed reluctant to place aggressive bets, rather preferring to wait on the sidelines ahead of this week’s key central bank event risks.

The Federal Reserve is scheduled to announce its policy decision on Wednesday and is widely expected to quicken the pace of tapering the bond purchases, setting the stage for an earlier-than-expected interest rate hike.

From a technical perspective, bulls are likely to wait for a sustained move beyond a technically significant 200-day SMA before placing fresh bets. The mentioned barrier, around the $1,793-95 region, coincides with 100-day SMA and should act as a pivotal point for traders. A convincing breakthrough has the potential to push spot prices beyond the $1,800 mark, towards testing the next relevant resistance near the $1,810-15 supply zone. On the flip side, the $1,775-74 area, followed by the $1,770 level should protect the immediate downside. This is followed by the monthly swing low, around the $1,762 region, which if broken will set the stage for a fall towards the $1,750-48 support zone.

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Source: Daily Times

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