ISLAMABAD
\nGold prices in the country fell for the fourth consecutive week, with a weekly decline of Rs7,200 (-3.25 percent) per tola, while gold prices in the international bullion markets fell by 1.94 percent for the second week in a row.
\nThe gold rate in Pakistan for a single tola of 24-karat on a week-on-week (WoW) basis fell to Rs214,500 from Rs221,700, according to the data provided by All Pakistan Sarafa Gems and Jewellers Association. Similarly, the gold rate for 10 grams of 24-karat dipped to Rs183,900 from Rs190,070 on WoW basis, showing a decrease of Rs6,170. Likewise, the gold rate for 10 grams of 22-karat fell to Rs168,570 from Rs174,230, showing a decrease of Rs5,660.
\nThe gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. The people prefer to buy this precious commodity in such times as a safe investment and a hedge. It is to note that the price of the bullion is Rs4,000 per tola \u201cunder-cost\u201d in Pakistan as compared to the Dubai market, showing that the Pakistani gold market is currently cheaper as compared to the global bullion markets.
\nIn global markets, the gold price fell sharply for the second week in a row to $1,920.20 from $1,958.20 per ounce, showing a weekly decline of $38 (-1.94 percent). In the preceding week, the gold prices fell by $2.5 (-0.13 percent).
\nGold price started the week on the back foot and extended its slide to a fresh multi-month low at $1,910 on Thursday amid growing fears over a global economic slowdown and major central banks\u2019 hawkish outlook to interest rates. Gold prices stayed relatively calm on Monday as trading conditions remained thin with American investors enjoying a three-day weekend.
\nThe People\u2019s Bank of China on Tuesday lowered the benchmark one-year Loan Prime Rate (LPR) and the five-year LPR by 10 basis points (bps) to 3.55 percent and 4.2 percent, respectively. The announcement highlighted a loss of economic growth momentum in China, the world\u2019s biggest gold consumer.
\nUS Federal Reserve Chair Powell told Congress in his half-year testimony on the economy on Wednesday that further rate hikes would be necessary to fight inflation. In a similar move, the Bank of England and the Swiss National Bank\u2019s rate hikes reminded markets of major central banks\u2019 willingness to continue to tighten monetary policy.
\nConsequently, the 10-year US Treasury bond yield held steady above 3.7pc amid renewed US dollar strength, dragging the precious metal to its weakest level since mid-March at $1,910. Although a pullback in US bond yields on Friday helped gold price erase some of its losses, it ended the week in the negative territory.
\nFrom a technical perspective, gold closed the last three days below the 100-day Simple Moving Average (SMA). Additionally, the Relative Strength Index (RSI) indicator on the daily chart dropped to 40, reflecting the bearish shift in the near-term outlook.
\nOn the downside, $1,910 aligns as interim support before $1,900 (psychological level). In case gold price falls below $1,900 and starts using this level as resistance, the next bearish target could be set at $1,860 (200-day SMA). On the flipside, gold is likely to face stiff resistance at $1,940. A daily close above that level could attract buyers and open the door for an extended rebound towards $1,960 (20-day SMA) and $1,980 (50-day SMA).<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Gold prices in the country fell for the fourth consecutive week, with a weekly decline of Rs7,200 (-3.25 percent) per tola, while gold prices in the international bullion markets fell by 1.94 percent for the second week in a row. The gold rate in Pakistan for a single tola of 24-karat on a week-on-week […]<\/p>\n","protected":false},"author":2,"featured_media":248305,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[545],"class_list":{"0":"post-339954","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-gold"},"yoast_head":"\n