ISLAMABAD
Gold price in the country increased by Rs400 per tola on Friday following an uptick in prices in the international markets.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs214,200 from Rs213,800. Similarly, the price for 10 grams of 24-karat gold increased to Rs183,642 from Rs183,300, going up by Rs342. Similarly, the price for 10 grams of 22-karat gold increased to Rs168,338 from Rs168,024, showing an uptick of Rs314.
Earlier, gold price in the country declined by Rs2,150 (-0.99 percent) per tola last week. It was the third consecutive week when the prices of the yellow metal decreased in the country.
On the other hand, as of 1240 hours GMT, gold futures in the international market were available at $2,020.30 per ounce, showing an uptick of $0.40. Out of the $0.40 increase, +$3.90 was due to weakening of the US dollar and -$3.50 was due to predominant sellers, according to the Kitco Gold Index.
Gold prices struggled to capitalize on Thursday’s bounce from the $2,010-$2,009 area, or the weekly low, and traded sideways. Traders opted to wait on the sidelines ahead of the US Personal Consumption Expenditures (PCE) Price Index, which should provide more cues about the timing of when the Federal Reserve (Fed) could begin cutting interest rates. This, in turn, will play a key role in influencing the US dollar price dynamics and provide a fresh directional impetus to the non-yielding yellow metal.
In the meantime, the USD Index, which tracks the greenback against a basket of currencies, stands tall near its highest level since December 13 amid diminishing odds for a more aggressive Fed policy easing in 2024. This is acting as a headwind for the gold price, though a further decline in the US Treasury bond yields and persistent worries about geopolitical tensions stemming from the Middle East lent some support to the safe-haven precious metal. Nevertheless, gold remains on track to register losses for the second straight week.
From a technical perspective, any subsequent move up might continue to confront stiff resistance near the $2,040-2,042 supply zone. Some follow-through buying, however, might trigger a short-covering rally and lift the gold price further to the $2,077 intermediate hurdle en route to the $2,100 round-figure mark.
On the flip side, the weekly low, around the $2,011 area, could offer some support ahead of the $2,000 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and pave the way for a slide to the 100-day Simple Moving Average (SMA), currently around the $1,975-1,976 area. The Gold price could eventually drop to test the very important 200-day SMA, near the $1,964-1,963 region.
