Gold prices surged for the third straight session on Tuesday due to retreating US bond yields and a struggling dollar. As of 1320 hours GMT, gold in the international market was available at $1,808 per ounce, gaining $6.40. Gold continued with the positive momentum gained last day and hit above the $1,810 mark during trading.
The price of 10 grams of yellow metal in Pakistan, meanwhile, went up to Rs102,600 after gaining Rs900. Gold in the local market closed at Rs101,700 per 10 grams on Monday. A relatively higher increase in the gold price in the local market was due to overnight increase in the gold price in the international market.
According to experts, the benchmark 10-year US Treasury bond yield erased its daily gains after failing to break above 1.8 percent on Monday. Resultantly , the US Dollar Index lost its traction, which supported the gold prices. Apart from this, the momentum could further be attributed to some technical buying on a sustained strength above the very important 200-day simple moving average (SMA).
From a technical perspective, gold faces immediate resistance at $1,814 level. Any subsequent move beyond the $1,814 hurdle is more likely to confront stiff resistance and remain capped near the $1,830 heavy supply zone. Some follow-through buying will negate any near-term bearish bias and may lift gold prices to $1,849 resistance. On the flip side, the yellow metal has so far managed to defend an upward sloping trend-line extending from August 2021 swing lows. Gold enjoys strong support at $1,800 level.