ISLAMABAD: Gold price surged by Rs300 per tola on Tuesday following the recent surge 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 Rs219,600 from Rs219,300. Similarly, the price for 10 grams of 24-karat gold increased to Rs188,272 from Rs188,072, showing an increase of Rs258. Following suit, the price of 10 grams of 22-karat gold increased to Rs172,582. Earlier, gold price in the country surged by Rs3,000 (+1.38 percent) last week. On the other hand, as of 1100 hours GMT, gold futures in the international market were available at $2,052.80 per ounce. Gold price rose to a near three-week high, around the $2,055 region earlier last Friday, albeit it struggled to capitalize on the move amid a modest US dollar uptick. In fact, the USD Index, which tracks the greenback against a basket of currencies, reverses a part of the previous day’s slide to a near five-month trough touched in the aftermath of a downward revision of the US GDP print. The third and final reading from the US Bureau of Economic Analysis showed that the world’s largest economy expanded by a 4.9% annualized pace vs. a 5.2% rise in the second estimate. The markets were quick to price in a greater chance that the Federal Reserve (Fed) will start cutting rates as early as March 2024 and 155 basis points (bps) of easing by the end of next year. From a technical perspective, a move beyond the $2,047-2,048 hurdle, representing the top end of over a one-week-old trading range, favours bullish traders. Adding to this, the occurrence of a golden cross, with the 50-day Simple Moving Average (SMA) crossing the 200-day SMA from below, supports prospects for additional gains. The constructive outlook is reinforced by the fact that oscillators on the daily chart are holding in the positive territory. Hence, some follow-through move towards testing the next relevant hurdle, around the $2,072-2,073 region, looks like a possibility, above which the gold price could aim to reclaim the $2,100 round figure. TLTP
On the flip side, any meaningful corrective pullback could find decent support and attract fresh buyers near the $2,028-2,027 area. This should help limit the downside for the gold price near the $2,017 horizontal zone.
