Gold price in the country dipped by Rs7,800 per tola on Tuesday following a decrease in the price of the yellow metal in the international market.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs240,900 from Rs248,700. Similarly, the price for 10 grams of 24-karat gold decreased to Rs206,533 from Rs213,220, showing a dip of Rs6,687. Following suit, the price for 10 grams of 22-karat gold decreased to Rs189,322 from Rs195,452, going down by Rs6,130.
The gold price per tola decreased by Rs3,500 on Monday last. Overall, the gold price plunged Rs11,300 per tola in two sessions in the local market, taking cue from an over $100 per ounce decline in the international rate. It may be noted that gold price hit an all-time high in Pakistan on Saturday last when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time high of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9.
On the other hand, gold futures in the international market as of 1305 hours GMT, were available at $2,311.20 per ounce, showing a dip of $15.70. Out of the $15.70 decrease, +$2.85 was due to weakening of the US dollar and -$18.55 was due to predominant sellers, according to the Kitco Gold Index.
Gold price remained under heavy selling pressure and languished near its lowest level in over two weeks, around the $2,300 mark. Despite the overnight attack on US forces in the Middle East, investors remained optimistic amid hopes that the Iran-Israel conflict will not escalate further. This, along with expectations that the Federal Reserve could delay cutting interest rates, turned out to be a key factor undermining demand for the non-yielding yellow metal. Meanwhile, hawkish Fed expectations remained supportive of elevated US Treasury bond yields and allowed the US dollar to stand tall near its highest level since November touched last week.
From a technical perspective, oscillators on the daily chart – though they have been losing traction – are still holding in the positive territory and warrant some caution for bearish traders. Hence, it will be prudent to wait for some follow-through selling below the $2,300 mark before positioning for deeper losses. The Gold price might then slide to $2,260-2,255. On the flip side, any attempted recovery might now confront immediate resistance near the $2,325 region. A sustained move beyond, however, should allow the gold price to accelerate the momentum towards the $2,350-2,355 level.