ISLAMABAD
Gold price in the country increased for the second straight session by Rs700 per tola on Tuesday following an uptick in prices due to geopolitical tensions in the international markets.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs216,100 from Rs215,400. Similarly, the price for 10 grams of 24-karat gold increased to Rs185,271 from Rs184,671, going up by Rs600. Similarly, the price for 10 grams of 22-karat gold increased to Rs169,832 from Rs169,282, showing an uptick of Rs550.
Earlier, gold price in the country declined by Rs1,400 (-0.65 percent) per tola last week. It was the fourth 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 $2,034.30 per ounce, showing an uptick of $1.50.
The increase was due to predominant buyers, according to the Kitco Gold Index.
Gold price erased a large portion of its daily gains after meeting resistance near $2,040. However, gold price continued to advance amid the escalating Middle East crisis as US President Joe Biden pledged to retaliate for unmanned aerial drone attacks on US service personnel near northeastern Jordan, near the Syrian border. Still, the precious metal could turn sideways as investors await the interest rate decision by the Federal Reserve (Fed), which will be announced on Wednesday.
From a technical perspective, due to geopolitical tensions, the near-term appeal has turned bullish as price is sustaining strongly above the 20-day Exponential Moving Average (EMA). However, the 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 area, which indicates that momentum is weak.
Meanwhile, State Bank of Pakistan said on Tuesday that its gold reserves, which include gold deposits and swapped gold, amounted to 2.079 million fine troy ounces by December 31, 2023, equivalent to $4.32 billion, up from $4.23 billion from November due to a rise in international spot gold price in the review month.
