ISLAMABAD: Gold price increased by Rs300 per tola in the local market on Tuesday after falling for three consecutive sessions, as prices in the international markets increased after touching a three-week low.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs216,400 from Rs216,100. Similarly, the price for 10 grams of 24-karat gold surged to Rs185,528 from Rs185,271, showing an increase of Rs257. Similarly, the price for 10 grams of 22-karat gold increased to Rs170,067.
Gold price in the country declined by Rs2,000 (-0.91 percent) last week. The gold rate for a single tola of 24-karat decreased to Rs218,000 from Rs220,000 last week, according to the data shared by All Pakistan Gems and Jewellers Sarafa Association (APGJSA). Overall, the gold price increased by Rs2,400 per tola in the previous four weeks.
On the other hand, as of 1215 hours GMT, gold futures in the international market were available at $2,035.19 per ounce, showing an increase of $8.30. Out of the $8.30 increase, -$3 was due to strengthening of the US dollar and +$11.30 was due to predominant buyers, according to the Kitco Gold Index.
Gold staged a technical correction following Monday’s decline but failed to gather bullish momentum. With the benchmark 10-year US Treasury bond yield sitting comfortably above 4 percent, gold price fluctuated in a narrow channel slightly above $2,030.
From a technical perspective, any subsequent move up is likely to confront some resistance near the $2,040 horizontal zone, above which the gold price could aim to retest Friday’s swing high, around the $2,063-2,064 region. The next relevant hurdle is pegged near the $2,077 area, which if cleared decisively will negate any near-term negative outlook and allow bulls to reclaim the $2,100 round figure.
On the flip side, Monday’s low, around the $2,017-2016 region, now seems to protect the immediate downside ahead of the 50-day Simple Moving Average (SMA), currently near the $2,012-2,011 area. This is followed by the $2,000 psychological mark, below which the gold price could accelerate the slide towards the $1,988-1,986 intermediate support en route to the December low, around the $1,973 area. – TLTP