Gold price jumps by Rs2,400 to Rs242,700 per tola

Gold rates

ISLAMABAD: Gold price increased by Rs2,400 per tola in the local market in line with an overnight uptick in the price of the yellow metal in the international market.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs242,700 from Rs240,300. Similarly, the price for 10 grams of 24-karat gold increased to Rs208,076 from Rs206,018, showing an uptick of Rs2,058. Following suit, the price for 10 grams of 22-karat gold increased to Rs190,736 from Rs188,850, showing an uptick of Rs1,886.
The gold price for one tola of 24-karat gold has been kept a significant Rs3,000 below its actual cost due to a reduction in purchasing power, said Karachi Sarafa Association. The gold price in the country surged by Rs7,100 per tola in April. It may be noted that the gold price hit an all-time high in Pakistan on April 20 when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time highs of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9.
On the other hand, gold futures in the international market as of 1325 hours GMT were available at $2,344.70 per ounce, showing a decrease of $16.20. Out of the $16.20 decrease, -$4.95 was due to strengthening of the US dollar and $11.25 was due to predominant sellers, according to the Kitco Gold Index.
Gold stayed on the back foot and traded in the red below $2,350 after closing the previous three trading days in positive territory. The renewed USD strength and the recovery seen in US Treasury bond yields made it difficult for the gold price to hold its ground. Falling Chinese gold imports also weighed negatively on the gold price. Last week, China Customs data showed that China-bound shipments of gold for non-monetary use fell 30 percent in April from the previous month.
From a technical perspective, the gold price maintained its bullish potential, as the 14-day Relative Strength Index (RSI), was above the 50 level, currently trading near 52.60. Adding credence to the upside bias, the gold price closed on Tuesday above the key 21-day Simple Moving Average (SMA) resistance at $2,353. A sustained move above the abovementioned barrier at $2,372 would provide legs to the ongoing recovery, calling for a test of the next topside barrier at the May 24 high of $2,384. Further up, a test of the $2,400 mark will be inevitable. On the flip side, the immediate support is now aligned at the 50-day SMA support at $2,323, followed by the $2,300 threshold. – TLTP