Daily Times

Gold prices witnessed a decline in the local market on the first day of 2024 on Monday, while the international bullion market remained closed due to a public holiday in many countries around the world.

According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs219,700 from Rs220,000. Similarly, the price for 10 grams of 24-karat gold decreased to Rs188,357 from Rs188,615, showing a dip of Rs258. The international rate of gold remained unchanged at $2,082 per ounce on Monday with a premium of $20 per ounce.

Gold price in the country surged by Rs700 per tola for the third consecutive week in line with an uptick in the international rates. Overall, gold price increased by Rs4,400 per tola in the preceding three weeks.

To note, during the last 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 at Rs242,700 per tola on September 02.

From a technical perspective, gold price is likely to maintain its consolidation mode heading into the New Year, holding the higher ground. Having closed Friday below the rising trendline resistance, now at $2,084, 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 latter 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.

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.