Daily Times

Gold price snapped its three-day winning row on Thursday and fell by Rs500 per tola in line with an overnight drop in the international bullion prices.

According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs218,000 from Rs218,500. Similarly, the price for 10 grams of 24-karat gold decreased to Rs186,900 from Rs187,328 from Rs186,557, showing a dip of Rs428. Following suit, the price of 10 grams of 22-karat gold decreased by Rs393 to Rs171,325 from Rs171,718. Gold price in the country registered a weekly increase of Rs1,200 (+0.56 percent) last week, after falling by Rs8,000 (-3.58 percent) per tola in the preceding week. On the other hand, as of 1200 hours GMT, gold futures in the international market were available at $2,032.80 per ounce, showing an increase of $1.40. Out of the $1.40 increase, +$7.15 was due to weakening of the US dollar and -$5.75 was due to predominant sellers, according to the Kitco Gold Index.

Gold price regained positive traction on Thursday and reversed a major part of the previous day’s downfall amid the underlying bearish sentiment surrounding the US dollar. Growing acceptance that the Federal Reserve (Fed) will pivot away from its hawkish stance and start cutting interest rates as early as March 2024 dragged the US Treasury bond yields to its lowest level since July and undermined the greenback, benefitting the US dollar-denominated commodity.

Apart from this, a softer risk tone around the equity markets was seen as another factor driving haven flows towards the precious metal. From a technical perspective, the recent range-bound price action constitutes the formation of a rectangle pattern on short-term charts and marks a consolidation phase before the next leg of a directional move. Furthermore, oscillators on the daily chart are holding in the positive territory and are still far from being in the overbought zone, validating the constructive outlook for the gold price. That said, it will still be prudent to wait for a sustained breakout through the top boundary of the aforementioned trading band, around the $2,047-2,048 region. The price might then accelerate the positive move towards the next relevant hurdle near the $2,072-2,073. On the flip side, immediate support is pegged near the $2,028-2,027 region. This is followed by the $2,017 zone, which if broken might shift the short-term bias in favour of bearish traders. The subsequent decline could then drag the gold price to the $2,000 psychological mark.