Daily Times

Gold price in the country increased by Rs 1,500 per tola on Monday following an uptick in prices due to geopolitical tensions in the international markets.

According to the data provided by Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs 215,400 from Rs 213,900. Similarly, the price for 10 grams of 24-karat gold increased to Rs 184,671 from Rs 183,385, going up by Rs1,286. Similarly, the price for 10 grams of 22-karat gold increased to Rs 169,282 from Rs 168,103, showing an uptick of Rs 1,179. Earlier, gold price in the country declined by Rs1,400 (-0.65 percent) per tola last week. It was the fourth consecutive week when the prices of the yellow metal decreased in the country. On the other hand, as of 1245 hours GMT, gold futures in the international market were available at $2,029.50 per ounce, showing an uptick of $10.70. Out of the $10.70 increase, -$0.80 was due to strengthening of the US dollar and +$11.50 was due to predominant buyers, according to the Kitco Gold Index.

Gold price remained upbeat as mounting geopolitical tensions improved the appeal of bullion. The precious metal attracted significant bids as the drone attack on US bases near northeastern Jordan has impacted market sentiment. In addition, a moderate increase in the U S Core Personal Consumption Expenditures (PCE) data for December has softened the inflation outlook. Gold price also benefits from retreating US yields as investors await the Fed’s policy decisions later this week.

From a technical perspective, any subsequent move beyond the 50-day SMA hurdle, currently around the $2,027-2,028 region, might continue to attract some sellers near the $2,040-2,042 supply zone. A sustained strength beyond the latter could trigger a short-covering rally and lift the gold price further to the $2,077 intermediate hurdle en route to the $2,100 round-figure mark. On the flip side, immediate support is pegged near the $2,012-2,010 area ahead of the $2,000 psychological mark. Some follow-through selling will be seen as a fresh trigger for bearish traders and expose the 100-day SMA, currently near the $1,977-1,976 area.