ISLAMABAD
Gold prices in the local market inched down by Rs100 a tola on Friday due strengthening rupee against the US dollar, despite a massive surge in international bullion prices.
According to Karachi Sarafa Association, the price of one tola of 24-karat gold decreased to Rs197,100 from Rs197,200. Similarly, the gold price for 10 grams of 24-karat gold decreased to Rs168,891 from Rs168,980. Similarly, the price for 10 grams of 22-karat gold decreased to Rs154,900.
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.
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 1215 hours GMT, gold futures in the international market were available at $1,897.80 per ounce, showing an increase of $29.30. Out of the $29.30 increase, +$0.00 was due to weakening of the US dollar and +$29.30 was due to predominant buyers, according to the Kitco Gold Index.
Gold extended its daily rally and climbed above $1,890 for the first time in two weeks. The benchmark 10-year US Treasury bond yield was down nearly 2 percent on the day as investors sought refuge ahead of the weekend, helping gold prices stretch higher.
The 14-day Relative Strength Index (RSI) indicator is lying just below the midline, suggesting that the upside attempts appear temporary in gold price. Failure to seek a weekly close above the 21 DMA at $1,878 could reinforce bearish interest, fuelling a fresh downswing towards Wednesday’s low of $1,859. The next relevant support is seen at the $1,850 psychological level.
On the upside, recapturing the 21 DMA barrier on a sustained basis will confirm a bullish reversal from multi-month troughs. Gold buyers will then target the $1,900 threshold. Further up, powerful resistance around the $1,925 level could be challenged, where the 100 and 200 DMAs hang around.
