ISLAMABAD
Gold prices surged for the second straight session on Friday by Rs300 per tola in line with an increase in the international bullion prices.
According to the data shared by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs218,600 from Rs218,300. Prior to these two back-to-back increases, gold per tola price fell by Rs6,300 in Pakistan.
Similarly, the price for 10 grams of 24-karat gold increased to Rs187,414 from Rs187,157, showing an uptick of Rs257. Following suit, the price for 10 grams of 22-karat gold increased to Rs171,796 from Rs171,561, registering an uptick of Rs235.
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 1130 hours GMT, gold futures in the international market were available at $2,041.90 per ounce, showing an increase of $5.70. Out of the $5.70increase, -$2.20 was due to strengthening of the US dollar and +$7.90 was due to predominant buyers, according to the Kitco Gold Index.
Gold price traded with a mild positive bias, albeit lacked follow-through and remained below a one-and-half-week high touched the previous day. Against the backdrop of Friday’s stronger-than-expected monthly jobs report, the upbeat US macro data released on Thursday pointed to a resilient economy and raised doubts about an early policy easing by the Federal Reserve (Fed) in March 2024. This led to a modest recovery in the US Treasury bond yields, which, along with the prevalent risk-on environment, bolstered by hopes for additional stimulus measures from China, turned out to be a key factor acting as a headwind for the safe-haven precious metal.
From a technical perspective, positive oscillators on the daily chart support prospects for a further near-term appreciating move and some follow-through buying has the potential to lift the gold price to the next relevant hurdle near the $2,072-2,073 region. The momentum could get extended further and allow the price to reclaim the $2,100 round-figure mark.
On the flip side, the $2,012-2,010 horizontal zone might now protect the immediate downside ahead of the $2,000 psychological mark. A convincing break below the latter will make the gold price vulnerable and expose the 50-day SMA support, currently pegged near the $1,979-1,978 region.
