ISLAMABAD
Gold price surged for the third consecutive session in the local market on Thursday by Rs2,200 per tola following an overnight surge in the international bullion prices.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs222,800 from Rs220,600. Similarly, the price for 10 grams of 24-karat gold increased to Rs191,015 from Rs189,129, showing an increase of Rs1,886. Following suit, the price of 10 grams of 22-karat gold increased to Rs175,097 from Rs173,368, registering an uptick of Rs1,729. Gold price in the country has surged by Rs3,500 in the previous three sessions, while it went up by Rs3,000 (+1.38 percent) during the last week.
On the other hand, as of 1140 hours GMT, gold futures in the international market were available at $2,074.70 per ounce, showing a decrease of $3.20. Out of the $3.20 increase, +$3.50 was due to weakening of the US dollar and -$6.70 was due to predominant sellers, according to the Kitco Gold Index.
Gold price gained ground towards $2,100 as the US dollar extended weakness into early Thursday session. The improved risk appetite due to the potential for rate cuts by the Federal Reserve in Q1 2024, is lending support to the bright metal ahead of the US jobs data. Further, China’s pledge to promote stable growth by expanding domestic demand combined with the People’s Bank of China’s (PBOC) liquidity injections boost risk appetite at the expense of the US dollar. Therefore. gold price continues its upward trajectory, ignoring the modest rebound in the US Treasury bond yields, which traded at 3.81 percent, up 0.50pc on the day.
From a technical perspective, the 14-day Relative Strength Index (RSI) indicator is pointing north above the midline, adding credence to the latest uptick. Gold price needs a daily closing above the rising trendline resistance at $2,080 to extend the uptrend towards the all-time high of $2,144. Gold buyers will face stiff resistance at the $2,100 and $2,120 levels beforehand.
On the flip side, any pullback in gold price could meet initial demand at the previous day’s low of $2,061, below which the correction could extend towards the $2,050 round figure. The last line of defense for gold buyers is envisioned at the 21-day SMA at $2,035.
