GOLD PER TOLA RATE IN PAKISTAN: Gold prices in Pakistan decreased on Tuesday, with 24-karat gold being sold at Rs274,700 per tola, reflecting a decline of Rs1,000 compared to the previous trading session. In addition, the price for 10 grams of 24-karat gold was reported at Rs235,511, down by Rs857. Similarly, the price of 22-karat gold dropped to Rs215,885 per 10 grams.
Meanwhile, the silver market remained steady, with 24-karat silver priced at Rs3,050 per tola and Rs2,615 per 10 grams, unchanged from the previous session.
Global Gold Market Movements
Globally, spot gold traded near $2,647 an ounce, up by $4.1 or 0.15% from the previous day. Despite the slight uptick, the overall trend for gold remained subdued. The yellow metal has been trading within a familiar $50 range in recent weeks. On Tuesday, disappointment over China’s limited fiscal stimulus announcement weighed on gold prices. As the world’s largest consumer of gold, any news related to China’s economic policy tends to impact global gold demand.
Adding further pressure on gold was the reduced likelihood that the Federal Reserve (Fed) would cut interest rates by 50 basis points (bps) at its next meeting in November. Current market speculation suggests the Fed may only cut rates by 25 bps, or potentially not cut rates at all. This uncertainty has created a headwind for gold, as higher interest rates reduce the appeal of the non-interest-bearing asset.
Gold’s Support Factors: ETF Flows and Safe-Haven Demand
Despite the downward trend, gold prices remain underpinned by strong demand for gold-backed Exchange Traded Funds (ETFs) and safe-haven buying. Data from the World Gold Council (WGC) revealed that global gold ETFs saw inflows of $2.1 billion in August, marking the fourth consecutive month of positive inflows. In July, ETFs attracted $3.7 billion, the highest inflows since April 2022.
Additionally, rising geopolitical tensions continue to bolster gold’s status as a safe-haven asset. The escalating conflict between Israel and Hezbollah has raised concerns, particularly after Israel launched attacks in response to a bombing in southern Israel. In parallel, markets are bracing for potential retaliation from Israel against Iran after a ballistic missile strike last week.
Technical Outlook: Gold’s Next Moves
From a technical perspective, gold remains in a consolidation phase. The short-term trend is sideways, with the price oscillating between key levels. Resistance is seen at $2,673, while support lies at $2,632. A break above the $2,673 level could signal a return to the uptrend, potentially pushing gold towards the $2,700 mark. Conversely, a break below $2,632 could lead to a decline toward $2,625 or even $2,600 in the near term.
In the medium to long term, gold’s broader uptrend remains intact, with expectations of a price rebound once the current consolidation period concludes.
