ISLAMABAD: Gold price in the country remained unchanged despite political uncertainty on Monday, following a dip in prices in the international markets.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold remained unchanged at Rs214,300. Similarly, the price for 10 grams of 24-karat gold remained stable at Rs183,728. Following suit, the price for 10 grams of 22-karat gold remained unchanged at Rs168,416.
During the month of January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000 amid a drop in international prices and the continuous strengthening of the Pakistani rupee. However, gold price in the country surged by Rs2,100 (-0.98 percent) per tola last week due to a rise in prices in the international markets due to geopolitical tensions.
On the other hand, gold futures in the international market as of 1325 hours GMT were available at $2,023.50 per ounce, showing a dip of $0.90. Out of the $0.90 decrease, -$1.35 was due to strengthening of the US dollar and +$0.45 was due to predominant buyers, according to the Kitco Gold Index.
Gold price extended its sideways move and remained well within the striking distance of the monthly low touched last week. Expectations that the Federal Reserve (Fed) will keep interest rates higher for longer, bolstered by robust US macro data and hawkish rhetoric from several FOMC members, turned out to be a key factor acting as a headwind for the non-yielding yellow metal. Apart from this, easing fears about a further escalation of geopolitical tensions in the Middle East contributed to capping the upside for the safe-haven commodity.
From a technical perspective, last week’s swing low, around the $2,015 area, is likely to protect the immediate downside ahead of the $2,000 psychological mark. On the flip side, the 50-day SMA, around the $2,033 area, could act as an immediate hurdle ahead of last week’s swing high, near the $2,044-2,045 area. This is followed by the $2,065 region, or the monthly peak, which if cleared decisively will negate the near-term negative outlook. – TLTP