ISLAMABAD
Gold price increased by Rs200 per tola in the local market on Thursday, 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 Rs216,300 from Rs216,100. Similarly, the price for 10 grams of 24-karat gold increased to Rs185,442 from Rs185,271, showing an increase of Rs171. Similarly, the price for 10 grams of 22-karat gold increased to Rs169,989 from Rs169,832, showing an increase of Rs157.
Gold prices in the country declined by Rs2,000 (-0.91 percent) last week.
The gold rate for a single tola of 24-karat decreased to Rs218,000 from Rs220,000 last week, according to the data shared by All Pakistan Gems and Jewellers Sarafa Association (APGJSA). Overall, the gold price increased by Rs2,400 per tola in the previous four weeks.
On the other hand, as of 1230 hours GMT, gold futures in the international market were available at $2,032.80 per ounce, showing an increase of $8.70. Out of the $8.70 increase, +$2.20 was due to weakening of the US dollar and +$6.50 was due to predominant buyers, according to the Kitco Gold Index.
Gold price gained traction but remained below the $2,040-$2,042 resistance zone. The US dollar traded with a mild negative bias in a familiar range held over the past week or so amid the uncertainty over the Federal Reserve’s rate-cut path. This, along with geopolitical risks stemming from the Israel-Hamas war and worries about a slow recovery in China, lent some support to the safe-haven precious metal. Investors also seemed reluctant and preferred to wait for the US consumer inflation figures, due later in the day, for cues about the Federal Reserve’s future policy decisions.
From a technical perspective, any subsequent move up might continue to confront stiff resistance near the $2,040-2,042 region. A sustained strength beyond this level has the potential to lift the gold price further towards last Friday’s swing high, around the $2,064 area en route to the $2,077 area. Some follow-through buying will negate any near-term negative outlook and set the stage for a move towards reclaiming the $2,100 round figure.
On the flip side, the $2,020 level, followed by the multi-week low around the $2,017-2,016 area and the 50-day Simple Moving Average (SMA), currently near the $2,013 region should protect any meaningful slide. A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the gold price to the $2,000 psychological mark.
