ISLAMABAD
Gold prices continued to fall in the local market in line with decrease in the international bullion markets, and fell by Rs200 per tola on Monday.
According to All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for one tola of 24-karat gold decreased to Rs215,400 from Rs215,600. In the last three sessions, gold per tola price has fallen by Rs3,500 in Pakistan. Similarly, the price for 10 grams of 24-karat gold decreased to Rs184,677 from Rs184,842, showing a dip of Rs165.
Gold price in the country fell by Rs8,000 (-3.58 percent) per tola last week on a weekly basis. The gold rate for a single tola of 24-karat decreased to Rs215,600 from Rs223,600, according to the data shared by Karachi Sarafa Association and APGJSA.
On the other hand, as of 1240 hours GMT, gold futures in the international market were available at $1,994.20 per ounce, showing a decrease of $10.30. Out of the $10.30 decrease, -$2.70 was due to strengthening of the US dollar and -$7.60 was due to predominant sellers, according to the Kitco Gold Index.
Gold price retreated below the $2,000 mark last week for the first time since November 24, spurred by the latest US employment report showing the labour market was improving. The US Bureau of Labour Statistics showed the economy created 199,000 jobs, exceeding forecasts of 180,000, while the unemployment rate ticked down from 3.9 percent to 3.7 percent. That spurred a rally in the US dollar, making dollar-denominated commodities more expensive.
Gold price remained depressed below the $2,000 psychological mark and was pressured by some follow-through US dollar buying. The stronger-than-expected US monthly jobs report released on Friday forced investors to trim their bets for an early policy easing by the Federal Reserve. This led to a further recovery in the US Treasury bond yields, which was seen underpinning the buck and undermining demand for the USD-denominated commodity.
From a technical perspective, Friday’s breakdown below the $2,012-2,010 area could be seen as a fresh trigger for bearish traders. A subsequent slide towards testing the 50-day Simple Moving Average (SMA), currently pegged around the $1,965-1,963 zone, looks like a distinct possibility. This is followed by the very important 200-day SMA, near the $1,951-1,950 region, which if broken decisively will set the stage for an extension of the recent sharp pullback from an all-time high touched last Monday.
On the flip side, the $2,010-2,012 support break-point now seems to act as an immediate hurdle ahead of the $2,030 level and the $2,040 supply zone.
