Daily Times

Gold price snapped a three-day winning streak in the local market on Friday and decreased by Rs1,900 per tola following an overnight decrease 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 Rs220,900 from Rs222,800. Similarly, the price for 10 grams of 24-karat gold decreased to Rs189,386 from Rs191,015, showing a dip of Rs1,629. Following suit, the price of 10 grams of 22-karat gold decreased to Rs173,604 from Rs175,097, registering a dip of Rs1,493. Gold prices in the country surged by Rs1,600 per tola this week, while it went up by Rs3,000 (+1.38 percent) per tola last week.

To note, during the current calendar year, the intraday price of 24-karat gold was the lowest on October 04, 2023, which was Rs188,400, while the highest price during the year was recorded on September 02 of Rs242,700 per tola. On the other hand, as of 1145 hours GMT, gold futures in the international market were available at $2,066.60 per ounce, showing an increase of $1.40. Out of the $1.40 increase, +$0.80 was due to weakening of the US dollar and +$0.60 was due to predominant buyers, according to the Kitco Gold Index.

Gold prices found some demand on the final trading day of the year, in the wake of a cautiously optimistic market mood and renewed US dollar weakness. Investors braced for the end-of-the-year flows and refrained from placing any fresh directional bets on the gold price, leaving the bright metal in a phase of upside consolidation at around $2,070.

The US dollar staged a solid rebound from five-month lows against its major rival currencies on Thursday, which was helped by a modest uptick in the US Treasury bond yields, as markets resorted to profit-taking on the US dollar shorts heading into thinner liquidity conditions on Friday. Investors shrugged off the mixed US economic data, allowing the US dollar to breathe a sigh of relief. Meanwhile, the US Labor Department said that new state unemployment benefit claims rose by 12,000 last week to 218,000.

From a technical perspective, gold buyers may be a bit cautious but the bullish 14-day Relative Strength Index (RSI) indicator continues to keep them hopeful. Acceptance above the rising trendline resistance at $2,084 is needed to convincingly take on the $2,100 barrier, above which a fresh uptrend towards the all-time high of $2,144 cannot be ruled out.

On the flip side, if the gold price correction regains traction, initial support is seen at Wednesday’s low of $2,061. Further down, the $2,050 round figure could be tested. The last line of defense for Gold buyers is pegged at the 21-day Simple Moving Average (SMA) at $2,035.