Gold price slips by Rs600 to Rs245,000 per tola

ISLAMABAD: Gold price decreased by Rs600 per tola on Friday following an overnight dip 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 Rs245,000 from Rs245,600. Similarly, the price for 10 grams of 24-karat gold decreased to Rs210,048 from Rs210,562, showing a dip of Rs514. Likewise, the price for 10 grams of 22-karat gold decreased to Rs192,544 from Rs193,016, showing a decrease of Rs472.
It is worth noting that the price has been kept Rs4,000 below its actual cost, the Karachi Sarafa Association reported, saying: “In view of the significant reduction in purchasing power, the price of gold today has been kept under cost by Rs4,000.”
The gold price has increased by Rs3,900 in the last three sessions, while it increased by Rs5,500 per tola in Pakistan last week. However, 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 1315 hours GMT were available at $2,403.20 per ounce, showing an increase of $27.70. Out of the $27.70 increase, -$3.45 was due to strengthening of the US dollar and +$31.15 was due to predominant buyers, according to the Kitco Gold Index.
Gold price traded higher, helped by positive data from China that brightened the prospects for the country with the world’s largest market for gold. In the US, meanwhile, a raft of secondary data released on Thursday came out mixed and Federal Reserve officials repeated their mantra that inflation was still not coming down fast enough to contemplate cutting interest rates, with an overall neutralizing effect on gold price.
From a technical perspective, the gold price is trading back up at key resistance at $2,400. The precious metal has been rising in a channel since the May 2 lows, however, suggesting the short-term trend is bullish and more upside is eventually expected. The Relative Strength Index (RSI) has fallen back out of the overbought zone, suggesting renewed potential for more upside.
The break above $2,400 makes it more likely that gold will rally to the next resistance level at $2,417 (the April 19 high), followed by $2,430 (the all-time high). The medium and long-term charts (daily and weekly) are also bullish, adding a supportive backdrop for gold. – TLTP