Daily Times

Gold price fell for the third straight session on Thursday in the local market by Rs1,600 per tola, following an overnight dip in prices in the international markets.

According to the data provided by All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for one tola of 24-karat gold decreased to Rs213,700 from Rs215,300. Similarly, the price for 10 grams of 24-karat gold decreased to Rs183,213 from Rs184,585, showing a decrease of Rs1,372. Similarly, the price for 10 grams of 22-karat gold decreased to Rs167,945 from Rs169,203, coming down by Rs1,258.

Earlier, gold price in the country declined last week by Rs550 per tola. It was the second consecutive week when the prices of the yellow metal decreased in the country.

On the other hand, as of 1225 hours GMT, gold futures in the international market were available at $2,016.70 per ounce, showing an uptick of $11.40, after falling around one percent in the previous session. Out of the $11.40 increase, +$1.75 was due to weakening of the US dollar and +$9.65 was due to predominant buyers, according to the Kitco Gold Index.

Gold price executed a short-term recovery move in the midst of a persistent downtrend. Gold price printed a fresh monthly low near the psychological support of $2,000 on Wednesday, then bounced. Yet despite the rebound, the precious metal remained on the back foot as investors continued to worry about when the Federal Reserve (Fed) will start its long awaited rate-cut cycle. The hopes of an early rate-cut decision from the Fed are easing as the last leg of inflationary pressures in the United States is turning out significantly more stubborn than previously thought, due to robust consumer spending and steady labor market conditions.

From a technical perspective, gold price attempted a firm-footing near psychological support at $2,000 amid a nominal decline in the US Dollar Index. The near-term demand for the precious metal has turned bearish as it slipped below the 50-period Exponential Moving Average (EMA), which traded around $2,017. The 14-period Relative Strength Index (RSI) has dropped to near 40. If the RSI fails to sustain above 40 levels, a bearish momentum will get triggered.