ISLAMABAD
Gold prices in the local market inched down further on Friday by Rs150 per tola following an overnight dip in the international bullion prices.
According to All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of one tola of 24-karat gold decreased to Rs215,700 from Rs215,850. Similarly, the gold price for 10 grams of 24-karat gold decreased to Rs184,928 from Rs185,057, showing a dip of Rs129. With a premium of $20, the international rate of gold on Friday was set at $2,013 per ounce, after a decline of $3 in the international market, APGJSA said.
The Pakistani rupee edged lower against the US dollar in the inter-bank market for the second straight session and depreciated by 10 paisas to 285.37. In the open market, the local unit gained Re1 to reach 283 for buying and 286 for selling. Rupee’s depreciation makes gold costlier for local buyers if all other factors remain the same as gold is rated in US dollars.
During the last week, gold prices in the local market increased by Rs5,500 per tola.
On the other hand, as of 1325 hours GMT, gold futures in the international market were available at $1,996.50 per ounce, showing an increase of $4.40. Out of the $4.40 increase, +$1.35 was due to weakening of the US dollar and +$3.05 was due to predominant buyers, according to the Kitco Gold Index.
Gold prices struggled to capitalize on the previous day’s modest gains and oscillated in a narrow trading band, below the $2,000 psychological mark. Investors seemed reluctant to place aggressive directional bets and were seeking more clarity over the Federal Reserve’s rate-hike path.
From a technical perspective, the gold price, so far, has been struggling to move back above the $2,000 psychological mark. The oscillators on the daily chart are holding comfortably in the positive territory and support prospects for the emergence of some dip-buying near the $1,989-1,988 zone.On the flip side, the $2,000 mark might continue to act as an immediate barrier ahead of the $2,007 area and the $2,009-2,010 region.
