ISLAMABAD: Gold prices in the local market increased by Rs2,200 a tola on Friday as Middle East tensions kept escalating and the US Federal Reserve Chair Jerome Powell has endorsed a stable interest rate policy. According to All Pakistan Jewellers Manufacturers Association, the price of one tola of 24-karat gold increased to Rs208,500 from Rs206,300. Similarly, the gold price for 10 grams of 24-karat gold increased to Rs 178,755 from Rs176,869, showing an increase of Rs1,886. Following suit, the price for 10 grams of 22-karat gold decreased to Rs162,130 from Rs162,287, showing an increase of Rs157 as compared to the last session. Disparity still exists in the domestic bullion, with different rates being quoted at Peshawar and Lahore and there lacks a uniform rate, according to a media report. However, an agreement has been reached with all the provinces that a premium of $20 will be charged on the international gold price, and the interbank rate will be used for calculations of domestic gold. It is important to mention that in a bid to enhance transparency within the gold market, the State Bank of Pakistan has now authorised all gold dealers to calculate domestic bullion rates using the interbank exchange rate. TLTP
Moreover, the Federal Ministry of Industries and Production has established a 15-member advisory council that will review existing policies related to the gold trade, standards, certification, and value addition.
On the other hand, as of 1200 hours GMT, gold futures in the international market were available at $1,977.10 per ounce, showing an increase of $2.80. Out of the $2.80 increase, +$1.10 was due to weakening of the US dollar and +$1.70 was due to predominant buyers, according to the Kitco Gold Index.
Gold price extended upside to near $1,980 amid multiple tailwinds. The precious metal is on a three-day winning streak and is expected to recapture a five-month high of around $1,987. The ultimate resistance for the gold price is seen at $2,000.00. The 20 and 50-day Exponential Moving Averages (EMAs) have climbed above the 200-day EMA, which indicates that the upside bias has strengthened. The Relative Strength Index (RSI) (14) climbs above 60.00, warranting more upside in the gold price amid the absence of divergence and overbought signals.
