ISLAMABAD
Gold price in the country decreased by Rs800 per tola for the second session in a row on Tuesday, toeing a dip in the price of the yellow metal in the international market.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs239,200 from Rs240,000. Similarly, the price for 10 grams of 24-karat gold decreased to Rs205,075 from Rs205,761, showing a decrease of Rs686. Following suit, the price for 10 grams of 22-karat gold decreased to Rs187,986 from Rs188,615, going down by Rs629.
Gold price per tola reduced by Rs6,400 in Pakistan last week, taking the cumulative loss over the past two weeks to Rs14,200 (-5.63 percent) per tola. However, the gold price in the country surged by Rs7,100 per tola in April.
It may be noted that the gold price hit an all-time high in Pakistan on April 20 when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time highs of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9.
On the other hand, gold futures in the international market as of 1355 hours GMT on Wednesday were available at $2,308.40 per ounce, showing a dip of $5.50. Out of the $5.50 decrease, -$4.15 was due to strengthening of the US dollar and -$1.35 was due to predominant sellers, according to the Kitco Gold Index.
Gold moved sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clang to modest gains near 4.5 percent and limited gold’s upside. The hawkish remarks from Federal Reserve (Fed) officials later in the day might dampen hopes for potential interest rate cuts in 2024, despite weaker-than-expected US employment reports in April. This, in turn, might drag the precious metal lower.
From a technical perspective, the positive outlook of the yellow metal in the longer term remained unchanged as the gold price is above the key 100-day Exponential Moving Average (EMA) with an upward slope. The modest bearish stance was confirmed by the 14-day Relative Strength Index (RSI), which held below the 50-midline. The $2,300 psychological round figure will be the first downside target for the gold price. Any follow-through selling below this level will expose the gold price to $2,260. On the upside, the immediate barrier will emerge near a high of May 6 at $2,232. The next hurdle is located near the high of April 26 at the $2,350–$2,355 region. TLTP
