ISLAMABAD: Gold prices jumped by around 1.40 percent in the international market to close the week on a positive note as the University of Michigan’s Consumer Sentiment Index slumped to its lowest level in nearly a decade at 70.2 in August.
Gold in the international market was available at $1,780.60 per ounce after gaining $25.70 as compared to its closing value on Thursday last.
Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs94,000 after gaining Rs1,700. As the local market closes ahead of the international market, the difference is settled on the next day. The closing prices of the yellow metal in the country remained Rs93,000 on Friday last.
According to experts, bullish potential in gold price remains intact amid the ongoing weakness in the US Treasury yields, which remains a drag on the US dollar. They said that the US dollar selloff ahead of the weekend helped gold build on its recovery gains. They said the University of Michigan’s Consumer Sentiment Index slumped to its lowest level in nearly a decade at 70.2 in August, which helped the yellow metal make gains.
They said with the decisive rebound witnessed in the second half of the week, gold’s near-term outlook seems to have turned neutral with the Relative Strength Index (RSI) indicator on the daily chart rising to the 50 area. On the upside, the next target is located at $1,790 (20-day SMA, static level). A daily close above that level could open the door for additional gains towards $1,800 (psychological level) and $1,805, where the 50-day, 100-day and 20-week SMAs are located.
