ISLAMABAD
Gold price in the country increased by Rs4,600 per tola on Wednesday in line with an increase 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 Rs243,800 from Rs239,200. Similarly, the price for 10 grams of 24-karat gold increased to Rs209,019 from Rs205,075, showing an uptick of Rs3,944. Following suit, the price for 10 grams of 22-karat gold increased to Rs191,601 from Rs187,986, going up by Rs3,615.
The local rate was set at $2,366 per ounce (with a premium of $20) after a gain of $54 during the day. The Karachi Sarafa Association said that the price has been kept Rs3,000 below its actual cost. “In view of the significant reduction in purchasing power, the price of gold today has been kept under cost by Rs3,000,” the association said.
Gold price per tola reduced by Rs6,400 in Pakistan last week, taking the cumulative loss over the past two weeks to Rs14,200 (-5.63 percent) per tola. 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 1155 hours GMT on Friday were available at $2,371.20 per ounce, showing an uptick of $25.30. Out of the $25.30 increase, -$0.90 was due to strengthening of the US dollar and +$26.20 was due to predominant buyers, according to the Kitco Gold Index.
Gold price gained momentum despite the modest rebound in the US dollar. The yellow metal edged higher as many economists expected a weakening labor market could prompt the Federal Reserve (Fed) to cut interest rates sooner than currently expected to stimulate economic growth. Moreover, the renewed geopolitical concerns are likely to be a positive factor for gold’s value on the market.
From a technical perspective, the gold price kept the bullish vibe unchanged as it held above the key 100-day Exponential Moving Average (EMA) on the daily timeframe, while the 14-day Relative Strength Index (RSI) stood in bullish territory around 67.50.
On the upside, if bulls stepped in at the $2,400 psychological mark, the yellow metal could see a rally to an all-time high near $2,432. On the flip side, the first downside target will emerge at the resistance-turned-support level at $2,340. Extended losses could expose gold price to the $2,300 round mark, followed by a low of May 2 at $2,281.
