Daily Times

Gold price in the country inched down by Rs100 per tola on Tuesday after going up for 10 straight sessions.

According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs230,100 from Rs230,200. Similarly, the price for 10 grams of 24-karat gold slipped to Rs197,274 from Rs197,360, showing a dip of Rs86. Similarly, the price for 10 grams of 22-karat gold came down to Rs180,834 from Rs180,913, showing a dip of Rs79.

Earlier, gold price in the country surged last week by Rs9,900 (+4.49 percent) per tola. The gold rate for a single tola of 24-karat increased to Rs230,200 from Rs220,300. Similarly, the price of 10 grams of 24-karat gold increased to Rs197,360 from Rs188,872, reflecting an uptick of Rs8,488. Following suit, the price for 10 grams of 22-karat gold surged to Rs180,913 from Rs173,132, reflecting an uptick of Rs7,781.

During the month of February, the price for one tola of 24-karat gold increased by Rs200 to Rs215,700 from Rs215,500 while in January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000.

On the other hand, gold futures in the international market as of 1050 hours GMT were available at $2,175.50 per ounce, showing a dip of $6.30. Out of the $6.30 decrease, +$0.40 was due to weakening of the US dollar and -$6.70 was due to predominant sellers, according to the Kitco Gold Index.

Gold price came under some selling pressure amid extremely overbought conditions on the daily chart. Moreover, traders remained sideways ahead of the release of the latest US consumer inflation figures. The crucial US CPI report will influence expectations about the Federal Reserve’s (Fed) rate cut path and play a key role in determining the next leg of a directional move for the non-yielding yellow metal.

From a technical perspective, the Relative Strength Index (RSI) on the daily chart is flashing extremely overbought conditions and prompting some profit-taking. The technical setup makes it prudent to wait for some near-term consolidation or a modest pullback before positioning for an extension of the gold price’s recent blowout rally witnessed over the past two weeks or so.