Daily Times

Gold price in the country extended decline for the fifth session in a row and decreased by Rs1,400 per tola on Friday, toeing a dip 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 Rs239,600 from Rs241,000. Similarly, the price for 10 grams of 24-karat gold decreased to Rs205,418 from Rs206,619, showing a dip of Rs1,201. Following suit, the price for 10 grams of 22-karat gold decreased to Rs188,300 from Rs189,400, coming down by Rs1,100.

In the last five sessions, gold price per tola has reduced by Rs5,400 in Pakistan. Earlier, the gold price per tola decreased by Rs7,800 last week. However, the gold price in the country surged by Rs7,100 per tola in April. It may be noted that the gold price hit an all-time high in Pakistan on April 20 when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time highs of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9. The local market remained closed on Wednesday due to public holiday.

On the other hand, gold futures in the international market as of 131o hours GMT on Friday, were available at $2,301.10 per ounce, showing a dip of $2.20. Out of the $2.20 decrease, $14.40 was due to weakening of the US dollar and -$16.60 was due to predominant sellers, according to the Kitco Gold Index. From a technical perspective, the daily chart shows sellers rejected advances for a second consecutive day around $2,326.50. The same chart shows the 20 Simple Moving Average (SMA) remains flat just above the mentioned level, while the longer ones maintain their upward slopes well below the current price. Finally, technical indicators held within negative levels with uneven strength, skewing the risk to the downside.

The 4-hour chart shows the gold price is currently developing below bearish 20 and 100 SMAs, although a modestly bullish 200 SMA. Technical indicators recovered from their early lows but remain below their midlines and are losing their upward strength, suggesting buyers are not interested at the time being. The gold price has initial support at $2,291.20, followed by $2,276.50 and $2,260.30. On the flipside, the gold price faces initial resistance at $2,310.50. If this level is broken, then strong resistance will be at $2,326.50 ahead of $2,341.05.