Gold rises by Rs2,400 to 247,300 per tola

ISLAMABAD: Gold price in the country took a giant leap and hit a fresh high on Tuesday with an increase of Rs2,400 per tola after 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 Rs249,700 from Rs247,300. Similarly, the price for 10 grams of 24-karat gold increased to Rs214,077 from Rs212,020, showing an increase of Rs2,057. Following suit, the price for 10 grams of 22-karat gold increased to Rs196,238 from Rs194,351, going up by Rs1,887.
With a premium of $20, the international rate of gold was set at $2,391 per ounce, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association. It may be noted that earlier gold price per tola in Pakistan hit all-time high of Rs247,600 on April 9 amid record increase in the international rate.
On the other hand, gold futures in the international market as of 1350 hours GMT, were available at $2,373.20 per ounce, showing a dip of $8.80. Out of the $8.80 decrease, -$0.20 was due to strengthening of the US dollar and $8.60 was due to predominant sellers, according to the Kitco Gold Index.
Gold staged a correction and fluctuated in negative territory near $2,370 following Monday’s upsurge. The benchmark 10-year US Treasury bond yield continued to push higher above 4.6 percent and made it difficult for the gold price to gain traction.
The US dollar prolonged its recent upward trajectory and jumped to its highest level since November amid expectations that the Federal Reserve (Fed) will delay cutting interest rates in the wake of sticky inflation and a resilient US economy. This is seen as a key factor exerting some pressure on the US dollar-denominated commodity.
From a technical perspective, the overnight bounce validated the $2,325-2,324 support zone, which should now act as a key pivotal point. A convincing break below has the potential to drag the gold price to the $2,300 round figure. On the flip side, bulls might now wait for strength beyond the $2,400 mark before placing fresh bets and positioning for a move back towards retesting the record peak, around the $2,431-2,432 region touched last Friday. – TLTP