Gold loses shine by Rs1,400 per tola

ISLAMABAD: Gold price in the country decreased by Rs1,400 per tola on Thursday following an overnight dip in prices in the international markets.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs213,800 from Rs215,200. Similarly, the price for 10 grams of 24-karat gold decreased to Rs183,300 from Rs184,500, going down by Rs1,200. Similarly, the price for 10 grams of 22-karat gold decreased to Rs168,024 from Rs169,124, showing a dip of Rs1,100.
Earlier, gold price in the country declined by Rs2,150 (-0.99 percent) per tola last week. It was the third consecutive week when the prices of the yellow metal decreased in the country.
On the other hand, as of 1225 hours GMT, gold futures in the international market were available at $2,014.10 per ounce, showing an uptick of $0.70. Out of the $0.70 increase, -$0.40 was due to strengthening of the US dollar and +$1.10 was due to predominant buyers, according to the Kitco Gold Index.
Gold price reversed a part of Wednesday’s heavy losses to a multi-day low, albeit it lacked bullish conviction. The US dollar surged in the previous session after the US data boosted the local currency, driving gold price down to $2,011.72, a fresh weekly low.
From a technical perspective, the price has an initial support at $2,011.70, which is the previous day’s close price. This is followed by over a one-month low, around the $2,000 psychological mark set last week, which if broken decisively will be seen as a fresh trigger for bearish traders. The gold price might then turn vulnerable to accelerate the fall towards the $1,988 intermediate support before eventually dropping to the 100-day Simple Moving Average (SMA), currently around the $1,972 area, en route to and the 200-day SMA, near the $1,964-1,963 region.
On the flip side, any meaningful strength beyond the $2,022 immediate hurdle might continue to confront stiff resistance near the $2,033 supply zone. Some follow-through buying, however, might negate the near-term bearish outlook and trigger a short-covering rally. – TLTP