Daily Times

Gold price in the country snapped a two-day losing streak on Tuesday and surged by Rs300 per tola on Tuesday, following an overnight surge in prices in the international markets.

According to the data provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for one tola of 24-karat gold increased to Rs215,100 from Rs214,800. Similarly, the price for 10 grams of 24-karat gold increased to Rs184,413 from Rs184,156, going up by Rs257.

During the month of January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000 amid a drop in international prices and the continuous strengthening of the Pakistani rupee. However, gold prices in the country surged by Rs2,100 (-0.98 percent) per tola last week due to a rise in prices in the international markets due to geopolitical tensions.

On the other hand, as of 1130 hours GMT, gold futures in the international market were available at $2,024.60 per ounce, showing a dip of $0.30. Out of the $1 increase, -$0.30 was due to strengthening of the US dollar and +$0.50 was due to predominant buyers, according to the Kitco Gold Index.

Gold price struggled to gain any meaningful traction and languished near a one-week low, around the $2,015 region touched on Monday. Expectations that the Federal Reserve (Fed) will keep interest rates higher for longer helped limit a modest US dollar (USD) profit-taking slide from almost a three-month high and acted as a headwind for the non-yielding yellow metal. The downside, however, remained cushioned in the wake of the cautious market mood, geopolitical risk and persistent worries about slowing economic growth in China, which tends to benefit the safe-haven gold price.

From a technical perspective, some follow-through selling below the $2,012-2,010 area might expose the $2,000 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the gold price to the 100-day Simple Moving Average (SMA) support, currently pegged around the $1,984-1,983 zone. The price could eventually drop to challenge the very important 200-day SMA, near the $1,965 region.

On the flip side, momentum beyond the 50-day SMA, near the $2,033 area, is likely to confront resistance near the $2,054-2,055 zone ahead of the $2,065 region, or last week’s swing high. Given that oscillators on the daily chart are just holding in the positive territory, some follow-through buying has the potential to lift the gold price towards the $2,078-2,079 region, or the year-to-date peak set in January.