Gold slips to Rs230,000 per tola


Gold prices decreased in the country on Friday despite gaining some positive traction in international bullion markets, snapping a three-day losing streak to the lowest level since April 3 touched the previous day.
The gold rate in the country for a single tola of 24-karat reached Rs230,000 from Rs233,600, showing a decrease of Rs3,600 per tola. Similarly, the price for 10 grams of 24-karat reached Rs197,200 from Rs200,200, with a decrease of Rs3,000 as compared to a day earlier. Likewise for 22-karat, the gold price was recorded at Rs210800 per tola and Rs180800 per 10 grams.
As of 1225 hours GMT, the gold futures in the international market were available at $1,963.60 per ounce, showing an increase of $6.20.
Out of the $6.20 per ounce increase, +$7.20 was due to weakening of the US dollar and -$1 was due to predominant sellers, according to Kitco Gold Index.
The gold rates in Pakistan exhibited a contrasting movement compared to the international markets, as the gold prices recovered after falling to a level last seen back on April 3. Modest US dollar downtick lent support to the gold price. The US dollar edged lower on the last day of the week as bulls opted to take some profits off the table following the recent run-up to a nearly two-month high. This, in turn, is seen as a key factor benefitting the US dollar-denominated gold price. The recent rise in gold rates locally can be attributed to the depreciation of the Pakistani rupee against the dollar.
From a technical perspective, the $1,950 region now seems to protect the immediate downside. Some follow-through selling will expose the 100-day Simple Moving Average (SMA), currently pegged near the $1,928 zone, below which gold price could slide further towards testing the $1,900 round-figure mark.
On the flip side, the ongoing recovery move-up is more likely to attract fresh sellers near the $1,970-$1,980 strong horizontal support breakpoint. This, in turn, should cap the gold price near the $2,000 psychological mark.