ISLAMABAD: Gold prices in the local market remained on a downward slide on Thursday, following rupee’s appreciation against the US dollar and a consistent decline in international bullion prices. The price of one tola of 24-karat gold decreased to Rs200,000 from Rs202,300. During the last four days, price of one tola of 24-karat gold has decreased by Rs15,700. Similarly, the gold price for 10 grams of 24-karat decreased to Rs171,468 from Rs173,440. TLTP
Similarly, the price of one tola of 22-karat gold fell to Rs183,333, while the rate for 10 grams came down to Rs157,178.
The fall in the precious metal’s value witnessed after the rupee’s upward movement in the local market. It is to be noted that local bullion pricing bodies, Karachi Sarafa Market and All Pakistan Gems and Jewelers Association, have refrained from announcing daily commodity prices since September 13 and the prices quoted above are being collected from different markets. This decision follows a crackdown on alleged betting and smuggling activities by certain institutions.
This is sparking speculation about potential actions against gold smugglers or a downward trend in the country’s precious metal market, leading to silence from the pricing body. It is worth noting that in the absence of official gold rates, consumers at jewelry shops are experiencing a state of confusion.
On the other hand, as of 1310 hours GMT, gold futures in the international market were available at $1,875.10 per ounce, showing an increase of $0.10. Out of the $0.10 increase, +$5.25 was due to weakening of the US dollar and -$5.15 was due to predominant sellers, according to the Kitco Gold Index.
Gold price gained traction and turned positive on the day after US House Speaker McCarthy said that he was optimistic to reach an agreement to avoid a government shutdown. As a result, the 10-year US Treasury bond yield retreated modestly, helping gold price edge higher.
From a technical perspective, the Relative Strength Index (RSI) on the daily chart started drifting in the oversold zone and helped limit the downside for the gold price. The subdued range-bound price action, meanwhile, might still be categorized as a bearish consolidation phase and the lack of any buying interest suggests that the path of least resistance for the gold price is to the downside.
Nevertheless, the price remained vulnerable to prolong its downward trajectory towards the next relevant support near the $1,860-1,858 region en route to the $1,820 level.
