ISLAMABAD: Gold price in the country snapped a two-day winning streak on Wednesday and fell by Rs600 per tola, following a dip in prices in the international markets.
According to the data provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for one tola of 24-karat gold decreased to Rs215,500 from Rs216,100. Similarly, the price for 10 grams of 24-karat gold decreased to Rs184,756 from Rs185,271, going down by Rs515. Similarly, the price for 10 grams of 22-karat gold decreased to Rs169,360 from Rs169,832 from Rs169,282, showing a dip of Rs472.
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. Earlier, gold price in the country declined by Rs1,400 (-0.65 percent) per tola last week. It was the fourth consecutive week when the prices of the yellow metal decreased in the country.
On the other hand, as of 1240 hours GMT, gold futures in the international market were available at $2,037.80 per ounce, showing an uptick of $1.20. Out of the $1.20 increase, -$2.15 was due to strengthening of the US dollar and +$3.35 was due to predominant buyers, according to the Kitco Gold Index.
Gold price attracted some dip-buying and turned positive for the third successive day, though any meaningful upside seemed elusive. A further decline in the US Treasury bond yields, along with persistent worries about the deepening Middle East conflict and China’s economic woes, turned out to be key factors lending some support to the safe-haven precious metal. Moreover, traders refrained from placing directional bets and preferred to wait on the sidelines ahead of the crucial Federal Open Market Committee (FOMC) policy decision. The Federal Reserve is widely expected to keep its key interest rates unchanged.
From a technical perspective, the overnight failure to find acceptance above the $2,040-2,042 supply zone and some follow-through selling below the 50-day Simple Moving Average (SMA), currently around the $2,030-2,029 region, will expose the $2,012-2,010 support zone. This is followed by the $2,000 psychological mark.
On the flip side, bulls need to wait for acceptance above the $2,040-2,042 static resistance and a subsequent move beyond the overnight swing high, around the $2,048-2,049 region, before placing fresh bets. Given that oscillators on the daily chart have just started moving into the positive territory, the gold price could then accelerate the positive move towards the next relevant hurdle near the $2,077 zone. – TLTP