ISLAMABAD: Gold price maintained its winning row for the second straight session on Tuesday and surged by Rs400 per tola in line with an uptick in the international bullion prices. According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs217,600 from Rs217,200. Similarly, the price for 10 grams of 24-karat gold increased to Rs186,557 from Rs186,214, showing an uptick of Rs343. Following suit, the price of 10 grams of 22-karat gold increased by Rs315 to Rs171,011 from Rs170,696. TLTP
Gold price in the country registered a weekly increase of Rs1,200 (+0.56 percent) last week, after falling by Rs8,000 (-3.58 percent) per tola in the preceding week.
On the other hand, as of 1240 hours GMT, gold futures in the international market were available at $2,028.90 per ounce, showing an increase of $1.90. Out of the $1.90 increase, +$1.40 was due to weakening of the US dollar and +$0.50 was due to predominant buyers, according to the Kitco Gold Index.
Gold price struggled for a direction with further upside seemingly imminent as the Federal Reserve sticks its head above the parapet, showing the guts to discuss interest rate cuts. The precious metal is expected to continue capitalizing as the US dollar falls on deepening expectations of three rate cuts in 2024, amid significant progress on the US inflation towards 2 percent.
Fed policymakers have characterized the recent rally in the gold price as “exaggerated” citing that the central bank is focusing on how much longer the monetary policy should remain tight to achieve price stability and not on lowering borrowing rates currently. This week, action in the gold price will be guided by the United States Durable Goods Orders and core Personal Consumption Expenditure price index (PCE).
From a technical perspective, gold price trades back and forth near $2,040 amid an absence of potential economic triggers ahead. The precious metal corrects gradually this week but remains above the 20-day exponential moving average, which indicates that the short-term trend is bullish. A decisive break above $2,050 could expose it to further upside towards $2,100.
