Daily Times

Gold price in the country increased by Rs1,200 per tola on Tuesday following an uptick in price in the international market.

According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs229,400 from Rs228,200.

Similarly, the price for 10 grams of 24-karat gold increased to Rs196,674 from Rs195,645, showing an increase of Rs1,029. Following suit, the price for 10 grams of 22-karat gold increased to Rs180,284 from Rs179,341, going up by Rs943. According to All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the international rate of gold on Tuesday was set at $2,193 per ounce with a premium of $20.

Earlier, gold price in the country fell last week by Rs2,350 (-1.03 percent) per tola to Rs225,150 from Rs227,500. In the preceding week, gold price fell by Rs2,700 (-1.17 percent) per tola to Rs230,200 from Rs220,300. 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 1225 hours GMT were available at $2,193.70 per ounce, showing an increase of $23.10. Out of the $23.10 increase, +$1.90 was due to weakening of the US dollar and +$21.20 was due to predominant buyers, according to the Kitco Gold Index.

From a technical perspective, weakness below the overnight swing low, around the $2,164-2,163 region, is likely to find some support near the $2,156-2,155 area ahead of the $2,147-2,146 horizontal zone. A convincing break below the latter could drag the gold price further towards the next relevant support near the $2,128-2,127 zone en route to the $2,100 round figure.

Meanwhile, the Relative Strength Index (RSI) on the daily chart has eased from the overbought territory and favours bullish traders. That said, the $2,200 psychological mark could act as an immediate strong barrier hurdle, above which a fresh bout of technical buying should lift the gold price towards the record high, around the $2,223 zone touched last Thursday.