ISLAMABAD: Gold price surged by Rs1,800 per tola on Friday following an uptick in the international bullion prices where it rose to three-week high. According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs219,800 from Rs218,000. Similarly, the price for 10 grams of 24-karat gold increased to Rs188,443 from Rs186,900, showing an increase of Rs1,543. Following suit, the price of 10 grams of 22-karat gold increased by Rs1,415 to Rs172,740 from Rs171,325. Gold price in the country registered a weekly increase of Rs1,200 (+0.56 percent) last week, after falling by Rs8,000 (-3.58 percent) per tola in the preceding week. On the other hand, as of 1145 hours GMT, gold futures in the international market were available at $2,062.60 per ounce, showing an increase of $15.90. Out of the $15.90 increase, +$4.65 was due to weakening of the US dollar and +$11.25 was due to predominant buyers, according to the Kitco Gold Index. TLTP
Any meaningful downside for the precious metal, however, seems limited amid the prospects of a global rate-cutting cycle. This, in turn, suggests that the path of least resistance for the non-yielding yellow metal is to the upside and a corrective decline might still be seen as a buying opportunity. Nevertheless, the gold price remains on track to register modest gains for the second week in a row.
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. 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.
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. That said, a convincing break below the latter might prompt some technical selling and make the gold price vulnerable to accelerate the slide towards the $2,000 psychological mark.
