ISLAMABAD
Gold price in the country extended gains and increased by Rs1,900 per tola on Tuesday after the price of the yellow metal in the international market jumped to an all-time high.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs247,600 from Rs245,700. Similarly, the price for 10 grams of 24-karat gold increased to Rs212,277 from Rs210,648, showing an increase of Rs1,629.
Following suit, the price for 10 grams of 22-karat gold increased to Rs194,587 from Rs193,094, going up by Rs1,493 as compared to the previous session.
Gold price has marked the tenth day of a positive move in the previous eleven days and climbed to a fresh all-time peak.
Earlier, gold price surged by Rs10,300 (4.39 percent) per tola last week to Rs245,100.
The rally currently being witnessed in the domestic bullion has been on since March in which the yellow metal gained a substantial Rs19,100 per tola. It is crucial to note that the previous highest price for 24-karat gold was Rs240,000 per tola observed on May 10, 2023.
On the other hand, gold futures in the international market were available at $2,353.60 per ounce, showing an increase of $16.20.
Out of the $16.20 increase, $1.15 was due to strengthening of the US dollar and $15.05 was due to predominant buyers, according to the Kitco Gold Index.
The optimism over a possible ceasefire between Israel and Hamas faded rather quickly, which was evident from the cautious market mood. This, in turn, was seen as a key factor acting as a tailwind for the safe-haven precious metal. Meanwhile, the flight to safety dragged the US Treasury bond yields away from a multi-month peak touched on Monday. This kept the US dollar bulls on the defensive and lent additional support to the non-yielding gold price.
From a technical perspective, the Relative Strength Index (RSI) on the daily chart is flashing extremely overbought conditions and warrants some caution for bullish traders. Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for an extension of the recent blowout rally witnessed over the past two weeks or so.
