The price of gold in Pakistan fell by Rs8,000 per tola, marking a 3.58 percent decrease from the previous week. This drop is in line with the decrease in the international rate of gold. The price for a single tola of 24-karat gold decreased to Rs215,600 from Rs223,600, while the price of 10 grams of 24-karat gold closed at Rs184,842, down from Rs191,701 at the start of the week. This decline in the local market is attributed to the appreciation of the Pakistani rupee against the US dollar. As the rupee gains strength against the dollar, the value of gold, which is denominated in US dollars, decreases, assuming that all other factors remain the same.
On a global level, the price of gold experienced a week-on-week decrease of $66.50 (-3.21 percent), closing at $2,004.50 per ounce. This dip can be attributed to positive US employment reports, which led to an increase in the value of the US dollar and a surge in the US 10-year benchmark note yield.
In the midst of these fluctuations, gold reached an all-time high near $2,150 on Monday due to geopolitical tensions, but profit-taking subsequently caused a correction, bringing the price down to $2,030. Technical analysis suggests that gold may face immediate support at the $2,000 psychological level and could potentially see a further downward correction towards $1,980 and $1,960 in the near future. However, for gold to turn bullish again, it would need to stabilize and establish $2,020 as a level of support.
Additional insight:
The fluctuations in the price of gold in Pakistan are influenced by both local and global factors. The appreciation of the Pakistani rupee against the US dollar has contributed to the decrease in the local price of gold, while on the global stage, geopolitical tensions and economic indicators have played a significant role in shaping the direction of gold prices. Investors and traders in the gold market must consider these various factors when analyzing and making decisions regarding the precious metal.
