International gold prices remained almost flat on Friday amid a renewed upside in the US Treasury yields. Gold in the international market was available at $1,776.40 per ounce after shedding $0.20 at 1315 hours GMT. The price of 10 grams of yellow metal in Pakistan, meanwhile, decreased to Rs101,400 after shedding Rs100. Gold in the local market was available at Rs101,500 per 10 grams on Thursday last.
According to experts, gold stalled its early rebound amid the renewed upside in the US Treasury yields. They said that gold seems set to book the fourth straight weekly loss. They said that gold has been oscillating in a familiar trading band over the past two weeks or so. The range-bound price action could still be categorised as a bearish consolidation phase.
They said that the negative outlook is reinforced by the fact that spot prices have repeatedly failed to clear/find acceptance above a technically significant 200-day SMA. This, in turn, suggests that the near-term bias remains tilted firmly in favour of bearish traders, they added.
Meanwhile, the US dollar struggled to capitalise on the previous day’s positive move and witnessed a range-bound price action on the last day of the week. This further acted as a tailwind for the dollar-denominated commodity, though the uptick lacked bullish conviction. Expectations that rising inflationary pressure would force the Fed to tighten its monetary policy sooner rather than later capped gains for the non-yielding gold.
From a technical perspective, a convincing break below the $1,773-72 area will test the monthly swing low, around the $1,762 region. Some follow-through selling below the $1,759-58 zone will confirm a fresh bearish breakdown and drag gold prices further towards the next relevant support near the $1,750 level.
On the flip side, any subsequent move up might continue to confront stiff resistance near the $1,792-93 region (200-DMA). The mentioned barrier coincides with 100-day SMA and is closely followed by the $1,800 round-figure mark. A sustained strength beyond has the potential to lift spot prices to the next relevant resistance near the $1,810-15 supply zone en-route the $1,832-34 horizontal barrier.
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