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Wednesday, February 1, 2023
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HomeBusinessGold price surges to Rs103,300 per 10gm

Gold price surges to Rs103,300 per 10gm

Gold prices consolidated the overnight gains on Wednesday, holding up the 200-daily moving average (DMA) for the eighth consecutive session. As of 1250 hours GMT, gold in the international market was available at $1,817.90 per ounce, gaining $3.50. Gold witnessed the overnight sharp upward slide from the 1,800 to $1,814 in the closing hours of the international market. The price of 10 grams of yellow metal in Pakistan, meanwhile, went up to Rs103,300 after gaining Rs1,100. Gold in the local market was available at Rs102,200 on Tuesday last. A relatively higher increase in the price of yellow metal in the local market was due to an overnight increase in its price when the local market was closed. According to experts, gold rebounded despite the ongoing rally in the US Treasury bond yields and the dollar, as the relentless surge in new coronavirus cases globally underpinned gold’s inherent safe-haven appeal. The US set a global record of almost 1 million new Covid infections while China saw fresh outbreaks and restrictions. The bright metal also drew support from downbeat US ISM Manufacturing PMI data, with the headline figure disappointing with 58.7 in December alongside the sub-indices. From a technical perspective, gold stays above 200-DMA with firmer MACD and RSI adding to the bullish bias. A bull cross is in the making as the 21-DMA is looking to cross the 200-DMA for the upside. If that materialises then bulls could get the much-needed impetus to extend the recovery from the 200-DMA support, as a test of the $1,820 round figure remains on the table. Further up, the monthly high of $1,832 will be challenged once again. Even if that level is crossed, the gold price can target another resistance at $1,834, which is the top point marked during July and September 2021. On the flip side, immediate support is seen at the horizontal 50-DMA at $1,805, below which the confluence of the 21 and 200-DMAs at $1,800 will offer strong support to gold bulls. The next best safety net for gold optimists is envisioned at $1,793, the 100-DMA cap.

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