Basket Village USA
After closing last week on a positive note at $ 1,819 an ounce in the international market, with a gain of $ 33.90 (+ 1.9%) on a weekly basis, gold is expected to remain slightly bearish at short term.
Likewise, the price of gold rose 0.71% in Pakistan over the past week. The price of 10 grams of the yellow metal in Pakistan was 98,700 rupees at the opening of last week and rose to 99,400 rupees to close the week.
The difference in the appreciation of the price of gold in the local and international markets was due to the appreciation of the local currency, which appreciated by 0.96% against the US dollar during the week, the dollar opening at Rs 171.65 last Monday and closing at Rs. .01 170 last Friday.
According to experts, the improvement of the rupee has helped to control the price of gold. They said the weaker dollar and the fall in the international bullion market had a double impact on the price of gold in Pakistan. They said the relatively smaller increase in the price of gold was a result of the facilities offered by Saudi Arabia.
Gold hit two-month highs, slightly above the October high of $ 1,813.85, according to experts. With spot prices now up over $ 26 on Friday, this marks an impressive turnaround of over $ 50 from previous weekly lows around the $ 1,790 mark set on Wednesday. If prices manage to break clear above the October highs, this could open the door for an extension of gains to the next key support area, a quadruple top in the $ 1,830 that gold has. could not exceed despite several tests in July. , August and September.
A sharp drop in the US government’s long-term borrowing costs, which lowers the opportunity cost of holding precious metals, thus prompting market participants to invest, was the main driver behind the gains on Friday. , as was also the case on Thursday when the precious metal rallied sharply from weekly lows. Gold closed above the 200-day and 100-day SMAs for the second day in a row on Friday. Additionally, the Relative Strength Index (RSI) indicator on the daily chart has moved above 50, confirming the bullish change in the near-term outlook.
Experts say investors will be watching US Treasury bond yields closely. Currently, the 10-year yield is below 1.5% and unless it manages to rebound above that level, gold may continue to rise. On the other hand, gold could lose interest in the event that the 10-year yield recovers 1.6% and stabilizes above this level.
It is relevant to mention here that TLTP Research Wing predicted on October 31st that gold is likely to remain slightly bullish in the near term.
