ISLAMABAD
Gold prices moved downward by Rs1,200 per tola in the local market for the third straight session on Friday, following a dip in international prices and a relatively stable rupee.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs217,000 from Rs218,200. Similarly, the price for 10 grams of 24-karat gold decreased to Rs186,043 from Rs187,071, showing a decrease of Rs1,028. Following suit, the price for 10 grams of 24-karat gold came down by Rs943 to Rs170,539 from Rs171,482. During the last three sessions, the price for one tola of 24-karat gold has decreased by Rs4,300 in the local market.
Earlier, gold prices in the country surged by Rs700 per tola last week, third in a row, 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 1210 hours GMT, gold futures in the international market were available at $2,039.20 per ounce, showing a decrease of $4.40. Out of the $4.40 decrease, -$5.60 was due to strengthening of the US dollar and +$1.20 was due to predominant buyers, according to the Kitco Gold Index.
Gold price came under bearish pressure and declined below $2,040 on, as traders seemed reluctant to place aggressive bets ahead of the US monthly jobs report and the 10-year US Treasury bond yield clung to gains above 4 percent, not allowing gold price to stage a rebound. The US will publish the monthly Nonfarm Payrolls (NFP) report later in the day.
From a technical perspective, indicators stood within neutral levels, as the Relative Strength Index (RSI) indicator was flat but the momentum was heading lower. Overall, the bearish potential seemed limited as long as the bright metal retains the $2,030 base. The first support level is at 2,031.00. However, if it is crossed, the next support lies at 2,015.50 before the psychological $2,000 level.
On the flip side, $2.043.60, the previous closing, is the first resistance level. The bulls may face resistance at $2,052.30 if they cross initial resistance. The third resistance lies at $2,065.45, which if broken convincingly, the bulls may eye $2,100 level.
