ISLAMABAD: Gold prices in the local market increased by Rs5,500 a tola on Wednesday due to a surge in international bullion prices where it touched the four-week high, and depreciation of the rupee against the US dollar. According to Karachi Sarafa Association, the price of one tola of 24-karat gold increased to Rs206,500 from Rs201,000. Similarly, the gold price for 10 grams of 24-karat gold increased to Rs177,040 from Rs172,320, showing an increase of Rs4,720. Following suit, the price for 10 grams of 22-karat gold increased to Rs162,287 from Rs158,000, showing an increase of Rs4,287 as compared to the last session. The Pakistani rupee depreciated by Rs3.26 against the US dollar in the inter-bank market for the second straight session on Wednesday and reached 280.29. Similarly, the rupee plummeted by Rs6.50 against the greenback in the open market and was quoted in the range of 280-283 a dollar as compared to 273.50-276.50 in the previous session. As gold is denominated in the US dollars, when the PKR weakens against the USD, the value of gold surges in Pakistan. It is important to mention that in a bid to enhance transparency within the gold market, the State Bank of Pakistan has now authorised all gold dealers to calculate domestic bullion rates using the interbank exchange rate. Moreover, the Federal Ministry of Industries and Production has established a 15-member advisory council that will review existing policies related to the gold trade, standards, certification, and value addition. TLTP
\nOn the other hand, as of 1250 hours GMT, gold futures in the international market were available at $1,946.80 per ounce, showing an increase of $24.30. Out of the $24.30 increase, -$3.30 was due to strengthening of the US dollar and +$27.60 was due to predominant buyers, according to the Kitco Gold Index.
\nEscalating geopolitical tensions fuelled gold\u2019s rally mid-week as investors stay focused on headlines surrounding the Israel-Hamas conflict. Gold price clings to the latest gains amid a broadly subdued US dollar and a pullback in the US Treasury bond yields.
\nGold price holds firmer above the critical 20-Daily Moving Average (DMA) at $1,930, having stormed through it earlier. The 14-day Relative Strength Index (RSI) indicator is pointing higher above the midline, suggesting that there is more room to the upside.
\nThe next resistance level is seen at the September 20 high of $1,947, above which the September 1 high of $1,953 will be put to test. A sustained move above the latter could fuel a fresh uptrend towards the $1,970-$1,980 supply zone. The support lies at the 100 DMA at $1,923. Further south, the previous day\u2019s low of $1,912 will be on gold sellers\u2019 radars.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Gold prices in the local market increased by Rs5,500 a tola on Wednesday due to a surge in international bullion prices where it touched the four-week high, and depreciation of the rupee against the US dollar. According to Karachi Sarafa Association, the price of one tola of 24-karat gold increased to Rs206,500 from Rs201,000. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-362486","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n