Islamabad
Gold price managed to regain some overnight losses on Thursday and gained around 0.80 percent.
At 1300 hours GMT, gold in the international market was available at $1,739.20 per ounce after gaining $12.10.
Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs95,500 after gaining Rs100. The closing prices of the yellow metal in the country remained Rs95,400 on Wednesday last.
A relatively lower increase in local gold prices as compared to international price was the risks remain skewed to the downside amid the immense strength seen in the US dollar and the Treasury yields so far this week.
The Fed remains well on track to withdraw the stimulus support later this year, with markets pricing a rate hike in 2022.
The hawkish Fed narrative and higher inflation seeming temporary keep the bullish undertone intact in the US yields, weighing negatively on the yields of gold, they said.
Further, fading worries over the US government shutdown also adds to the greenback’s strength at gold’s expense. Looking ahead, the dynamics in the yields and quarter-end flows will have a significant bearing on gold price.
Meanwhile, recovery moves need to cross the immediate trend line hurdle near $1,745 before directing gold buyers to a descending resistance line from September 03, near $1,771.
Overall, gold remains pressured towards the yearly low but intermediate bounces can’t be ruled out, according to experts.—TLTP
