ISLAMABAD: Gold price in the country snapped a two-day losing streak and increased by Rs400 per tola on Tuesday.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs227,300 from Rs226,900. Similarly, the price for 10 grams of 24-karat gold increased to Rs194,873 from Rs194,530, showing an uptick of Rs343. Following suit, the price for 10 grams of 22-karat gold increased to Rs178,634 from Rs178,319, going up by Rs315.
Earlier, gold price in the country fell last week for the first time in four weeks by Rs2,700 (-1.17 percent) per tola.The gold rate for a single tola of 24-karat increased to Rs230,200 from Rs220,300. During the month of February, the price for one tola of 24-karat gold increased by Rs200 to Rs215,700 from Rs215,500 while in January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000.
On the other hand, gold futures in the international market as of 1200 hours GMT were available at $2,154.90 per ounce, showing a dip of $4.80. Out of the $4.80 decrease, -$6.45 was due to strengthening of the US dollar and +$1.65 was due to predominant buyers, according to the Kitco Gold Index.
The stronger US inflation figures released last week fuelled speculations that the Federal Reserve (Fed) will stick to its higher-for-longer interest rates narrative and also modify its forward guidance to two 25 basis points rate cuts in 2024 instead of the three projected previously. This remained supportive of elevated US Treasury bond yields and lifted the US dollar to a nearly two-week high, which, in turn, was seen undermining the non-yielding yellow metal. This, along with persistent geopolitical tensions stemming from the protracted Russia-Ukraine war and conflicts in the Middle East, offered some support to the safe-haven gold price and helped limit losses.
From a technical perspective, the $2,145-2,144 level is the key support zone for gold price. A convincing break below will expose the next relevant support near the $2,128-2,127 zone before the gold price extends the corrective decline further towards the $2,100 round figure. On the flip side, the $2,175-2,176 region seems to have emerged as an immediate strong barrier, which if cleared should allow the gold price to challenge the record peak, around the $2,195 area touched last week. – TLTP