ISLAMABAD: Gold price in the country snapped a six-day winning streak and decreased by Rs1,200 on Friday, following an overnight dip in the prices in the international markets. According to the data provided by the All Pakistan Gems and Jewellers Sarafa Association, the price for one tola of 24-karat gold decreased to Rs214,100 from Rs215,300. Similarly, the price for 10 grams of 24-karat gold decreased to Rs183,556 from Rs184,585, showing a dip of Rs1,029. During the month of January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000 amid a drop in international prices and the continuous strengthening of the Pakistani rupee. However, gold prices in the country surged by Rs2,100 (-0.98 percent) per tola last week due to a rise in prices in the international markets due to geopolitical tensions. On the other hand, gold futures in the international market as of 1205 hours GMT were available at $2,024.10 per ounce, showing a dip of $0.10. Out of the $0.10 decrease, +$0.95 was due to weakening of the US dollar and -$1.05 was due to predominant sellers, according to the Kitco Gold Index. TLTP
Gold prices moved downwards due to easing hopes of early rate cuts by the Federal Reserve (Fed). The precious metal has come under pressure as Fed policymakers are less convinced over inflation declining to the 2 percent target, which has improved the appeal of the US dollar. The Fed seems not in a hurry to jump quickly on rate cuts as it could prompt upside risks to stubborn consumer price inflation.
From a technical perspective, gold price prints a fresh two-day low around $2,020 as investors need fresh insights on the interest rate outlook. The near-term outlook remains sideways. The 14-period Relative Strength Index oscillates in the 40-60 region, which indicates indecisiveness among investors.
