ISLAMABAD: Gold prices moved downward by Rs1,300 per tola in the local market on Wednesday, following a dip in prices in the international bullion market.
According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs220,000 from Rs221,300. Similarly, the price for 10 grams of 24-karat gold decreased to Rs188,614 from Rs189,729, showing a decrease of Rs1,115. Following suit, the price for 10 grams of 24-karat gold came down by Rs1,021 to Rs172,897 from Rs173,918.
Gold rates in Pakistan decreased in line with the decline in the international rate. With a premium of $20, the international rate of gold on Wednesday was set at $2,082 per ounce in the country.
Earlier, gold prices in the country surged by Rs700 per tola for the third consecutive week in line with an uptick in the international rates. Overall, gold price increased by Rs4,400 per tola in the preceding three weeks. To note, during the last calendar year, the intraday price of 24-karat gold was the lowest on October 04, 2023, which was Rs188,400, while the highest price during the year was recorded at Rs242,700 per tola on September 02.
On the other hand, as of 1125 hours GMT, gold futures in the international market were available at $2,051.60 per ounce, showing a decrease of $6.80. Out of the $6.80 decrease, -$4.60 was due to strengthening of the US dollar and -$2.20 was due to predominant sellers, according to the Kitco Gold Index.
Gold came under modest bearish pressure and declined towards $2,050, as the benchmark 10-year US Treasury bond yield built on Tuesday’s rebound and pushed higher towards 4 percent, weighing on gold prices. The US dollar stalled its recent recovery move from a multi-month low amid expectations about an imminent shift in the Federal Reserve’s policy stance.
From a technical perspective, the oscillators on the daily chart are holding comfortably in the positive territory and support prospects for the emergence of some dip-buying at lower levels. The $2,040 horizontal zone seems to protect the immediate downside. A convincing break below this level might turn the gold price vulnerable to accelerate the downfall further towards the $2,020 intermediate support en route to the 50-day Simple Moving Average (SMA), currently near the $2,008-2,007 region. – TLTP