ISLAMABAD
Gold prices continued to fall in the local market for the fifth straight day in line with consistent decrease in the international bullion prices, and fell by Rs1,000 per tola on Wednesday.
According to the data shared by All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for one tola of 24-karat gold decreased to Rs212,600 from Rs213,600. In the last five sessions, gold per tola price has fallen by Rs6,300 in Pakistan. Similarly, the price for 10 grams of 24-karat gold decreased to Rs182,270 from Rs183,128, showing a dip of Rs858.
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 1200 hours GMT, gold futures in the international market were available at $1,982.10 per ounce, showing an increase of $2.60. Out of the $2.60 increase, -$2.50 was due to strengthening of the US dollar and +$5.10 was due to predominant buyers, according to the Kitco Gold Index.
Any meaningful appreciating move in gold price seems elusive amid the uncertainty over the Federal Reserve’s (Fed) near-term policy outlook. Hence, the focus will remain glued to the outcome of the Fed’s Federal Open Market Committee (FOMC) policy meeting, scheduled to be announced later in the day.
In the meantime, the US inflation report released on Tuesday, along with Friday’s mostly upbeat employment details, forced traders to bet that it could take the Fed until May to begin a series of interest-rate cuts next year. This, in turn, assists the US dollar to regain positive traction and should act as a headwind for the non-yielding gold price.
From a technical perspective, the 50-day Simple Moving Average (SMA), currently around the $1,969-1,968 region, acts as an immediate support, below which gold price could slide to test the very important 200-day SMA, near the $1,953-1,952 area. On the flip side, any meaningful recovery attempt might continue to attract some sellers near the $2,000 psychological mark and remain capped near the $2,010-2,012 static resistance.
