Gold gains traction for 6th day to Rs215,300 a tola

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ISLAMABAD
Gold price in the country increased for the sixth consecutive session by Rs100 on Thursday, following an overnight increase in the prices in the international markets.
According to the data provided by the All Pakistan Gems and Jewellers Sarafa Association, the price for one tola of 24-karat gold increased to Rs215,300 from Rs215,200. Similarly, the price for 10 grams of 24-karat gold surged to Rs184,585 from Rs184,500, showing an uptick of Rs85. Following suit, the price for 10 grams of 22-karat gold increased to Rs169,203 from Rs169,124, showing a surge of Rs79.
During the month of January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000 amid a drop in international prices and the continuous strengthening of the Pakistani rupee. However, gold price in the country surged by Rs2,100 (-0.98 percent) per tola last week due to a rise in prices in the international markets due to geopolitical tensions.
On the other hand, gold futures in the international market as of 1255 hours GMT were available at $2,027.60 per ounce, showing an uptick of $1.90. Out of the $1.90 increase, +$3.90 was due to weakening of the US dollar and -2 was due to predominant sellers, according to the Kitco Gold Index.
Gold price moved closer to over a one-week high touched the previous day. Despite the Federal Reserve’s (Fed) hawkish outlook on interest rates, the US dollar dropped to a three-week low and turned out to be a key factor underpinning the commodity. Apart from this, concerns about geopolitical tensions stemming from conflicts in the Middle East further benefitted the precious metal’s safe-haven status and remained supportive of the move up.
From a technical perspective, bulls need to wait for sustained strength and acceptance above the 50-day SMA before positioning for any further gains. With oscillators on the daily chart just starting to gain positive traction, the gold price might then accelerate the momentum towards an intermediate hurdle near the $2,044-2,045 region en route to the $2,065 supply zone.
On the flip side, the $2,020 area now seems to protect the immediate downside ahead of the 100-day SMA, currently pegged near just below the $2,000 psychological mark. Some follow-through selling will expose the monthly low, around the $1,984 region, before the gold price eventually drops to challenge the very important 200-day SMA support near the $1,966-1,965 zone.