Gold takes a breather after hitting fresh record high

Surging gold price in the country took a breather on Friday and decreased by Rs900 per tola after the price of the yellow metal took a dip in the international market after hitting an all-time high.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs240,200 from Rs241,100. Similarly, the price for 10 grams of 24-karat gold decreased to Rs205,932 from Rs206,704, showing a decrease of Rs772. Following suit, the price for 10 grams of 22-karat gold decreased to Rs188,772.
Earlier, gold price in the country fell last week by Rs2,350 (-1.03 percent) per tola to Rs225,150 from Rs227,500. In the preceding week, gold price fell by Rs2,700 (-1.17 percent) per tola to Rs230,200 from Rs220,300. During the month of February, the price for one tola of 24-karat gold increased by Rs200 to Rs215,700 from Rs215,500 while in January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000.
On the other hand, gold futures in the international market were available at $2,292.20 per ounce, showing an increase of $1.50. Out of the $1.50 increase, -$0.45 was due to strengthening of the US dollar and +$1.95 was due to predominant buyers, according to the Kitco Gold Index.
Gold price drifted lower for the second straight day as the US dollar built on the overnight recovery from a nearly two-week low and remained well supported by hawkish comments from Federal Reserve (Fed) officials, which, in turn, undermined the commodity. Apart from this, the downfall could further be attributed to some repositioning trade ahead of the release of the US monthly employment details.
From a technical perspective, weakness below the $2,265 area could expose the weekly swing low, around the $2,229-2,228 region, with the $2,250 level acting as an intermediate support. Some follow-through selling has the potential to drag the gold price towards the $2,200 psychological mark, which is likely to act as a strong base.
On the flip side, a move beyond the $2,280 area might confront some resistance near the $2,300 round-figure mark. Acceptance above the latter will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent breakout momentum witnessed over the past two weeks or so.