Daily Times

Gold price in the country remained unchanged despite political uncertainty on Friday, following a dip in prices in the international markets. According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold remained uncahnged at Rs215,500. Similarly, the price for 10 grams of 24-karat gold remained stable at Rs184,756. Following suit, the price for 10 grams of 24-karat gold remained unchanged at Rs169,360.

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 price 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, gold futures in the international market as of 1235 hours GMT were available at $2,029.30 per ounce, showing a dip of $5. Out of the $5 decrease, -$1.35 was due to strengthening of the US dollar and +$3.65 was due to predominant sellers, according to the Kitco Gold Index. Gold price remained confined in a familiar trading range held since the beginning of this week. The incoming stronger US macro data, along with hawkish remarks by a slew of influential Federal Open Market Committee (FOMC) members, suggested that the Federal Reserve will keep interest rates higher for longer. This, along with an extension of the risk-on rally across the global equity markets, turned out to be a key factor acting as a headwind for the safe-haven precious metal.

From a technical perspective, the range-bound price action points to indecision among traders over the near-term trajectory for the gold price. In the meantime, the $2,022-2,020 area might continue to protect the immediate downside ahead of the weekly low, around the $2,015 region. Some follow-through selling will expose the $2,000 psychological mark, below which the gold price could accelerate the slide towards the 100-day Simple Moving Average (SMA), currently around the $1,987 zone. On the flip side, the weekly swing high, around the $2,044-2,045 area, is likely to act as an immediate barrier ahead of the $2,054-2,055 zone and the $2,065 region, or the monthly peak.