ISLAMABAD
Gold prices in the local market decreased by Rs1,200 a tola on Monday, toeing the dip in international bullion market where it slipped below the $2,000 an ounce mark.
According to the Karachi Sarafa Association, the price of one tola of 24-karat gold decreased to Rs212,100 from Rs213,300. Similarly, the gold price for 10 grams of 24-karat gold decreased to Rs181,842 from Rs182,870, showing a decrease of Rs1,028. Following suit, the price for 10 grams of 22-karat gold decreased to Rs166,688 from Rs167,631, showing a decrease of Rs943 as compared to the last session. The upward momentum in gold prices prior to recent decline can be attributed to the rising gold prices internationally as well as rupee’s depreciation against the US dollar.
, the currency in which the yellow metal is valued.
On the other hand, as of 1200 hours GMT, gold futures in the international market were available at $1,994.60 per ounce, showing a decrease of $11. Out of the $11 increase, +$2.25 was due to weakening of the US dollar and -$13.25 was due to predominant sellers, according to the Kitco Gold Index.
Gold has been in a steep uptrend since October 10, reclaiming crucial technical regions such as the 200-day simple moving average and the 2,000 psychological mark before posting a fresh five-month peak of 2,009. However, bullion experienced a minor pullback probably due to reaching overbought conditions.
Should gold extend its recent correction, the bears could attack the July resistance of 1,987, which could now act as support. Piercing through that wall, the price could slide towards the October support of 1,954. Further declines could then cease at the June hurdle of 1,932, which overlaps with the 200-day SMA.
Alternatively, if buying interest persists and the price jumps back above the 2,000 psychological zone, immediate resistance could be met at the five-month peak of 2,009. A break above that territory could bring the April resistance of 2,032 under examination. Surpassing that region, bullion could then challenge the April-May resistance zone of 2,049.
Gold seems to be under relentless upside pressure, which has resulted in a series of consecutive multi-month highs. Although the short-term oscillators are hinting that the advance is overstretched, fresh geopolitical concerns may add more fuel to the latest rally.
