ISLAMABAD: Gold prices moved upward by Rs1,600 per tola in the local market on Tuesday, following an uptick in prices in the international bullion market. According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs221,300 from Rs219,700. Similarly, the price for 10 grams of 24-karat gold increased to Rs189,729 from Rs188,357, showing an increase of Rs1,372. Following suit, the price for 10 grams of 24-karat gold increased by Rs1,257 to reach Rs173,918. Earlier, gold prices in the country surged by Rs700 per tola for the third consecutive week in line with an uptick in the international rates. Overall, gold price increased by Rs4,400 per tola in the preceding three weeks. To note, during the last calendar year, the intraday price of 24-karat gold was the lowest on October 04, 2023, which was Rs188,400, while the highest price during the year was recorded at Rs242,700 per tola on September 02. On the other hand, as of 1115 hours GMT, gold futures in the international market were available at $2,073.70 per ounce, showing an increase of $11.70. Out of the $11.70 increase, -$9.40 was due to strengthening of the US dollar and +$21.10 was due to predominant buyers, according to the Kitco Gold Index. Gold price regained positive traction and stalled its corrective slide from a multi-week peak. The precious metal remained well supported by rising bets that the Federal Reserve (Fed) will soon start cutting interest rates, as early as March. TLTP
This, along with geopolitical risks and concerns about fragile economic recovery in China, lent some support to the non-yielding yellow metal. That said, a modest US dollar strength, bolstered by a further rise in the US Treasury bond yields, kept the gold price below a multi-week high touched last Thursday.
From a technical perspective, last Wednesday’s closing around the $2,077-2,078 region now seems to act as an immediate barrier ahead of the $2,088 zone. Some follow-through buying should allow the gold price to reclaim the $2,100 round-figure mark. The subsequent move up has the potential to lift the price further towards retesting the record peak, around the $2,144 area set in early December.
On the flip side, the $2,060-2,058 region now seems to protect the immediate downside ahead of the $2,048 horizontal zone and the $2,040 area. Failure to defend the said support levels might turn the gold price vulnerable to accelerate the slide towards the $2,020 intermediate support.
