GOLD PRICES ON THE RISE: A PAKISTANI PERSPECTIVE

In today’s trading session for precious metal enthusiasts and investors alike, gold prices in Pakistan saw a noteworthy ascent on Wednesday, closely following the upward trend in the global market. The cherished metal, often seen as a safe haven for investors, was trading at an impressive Rs215,200 per tola by the day’s close, marking a significant increase of Rs750. A day earlier!

THE LATEST GOLD RATES

For those who prefer the metric system, the 10-gram figure for gold also saw a commendable rise, settling at Rs184,500. This was after a substantial boost of Rs644, underscoring a bullish sentiment in the market. These updates, provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), highlight a robust demand for gold, mirroring its value as both an investment and a luxury good.

Read: PKR EXCHANGE RATES TUESDAY, FEBRUARY 20

A SNAPSHOT OF TUESDAY’S MARKET

Reflecting on the immediate past, Tuesday’s market activity also showed positive momentum with gold prices increasing by Rs150 per tola. This consistent growth pattern underscores the metal’s enduring appeal and stability in the face of economic fluctuations.

INTERNATIONAL GOLD PRICES: A GLOBAL VIEW

On the global stage, gold’s allure remains unabated. The international rate for gold on Wednesday was pegged at a premium rate of $2,048 per ounce, following a $6 rise. This increment, although modest, is a clear indicator of gold’s sustained value and appeal across international markets. The APGJSA’s citation of a $20 premium further emphasizes the global market’s optimistic outlook on gold.

XAUUSD posted an intraday high of $2032.39 and intraday low of $2023.00. Gold is currently trading at $2027.85 (2:30pm Wednesday, 21 February 2024 (GMT+5) Time in Pakistan). A day earlier gold was trading at $2027.40 (5:08pm Tuesday, 20 February 2024 (GMT+5) Time in Pakistan).

XAUUSD_2024-02-21_14-29-55

SILVER STANDS STEADY

While gold steals the spotlight with its gleaming gains, silver rates in Pakistan have held their ground, remaining steady at Rs2,570 per tola. This stability in silver prices provides an interesting contrast to the dynamic shifts observed in the gold market, suggesting a nuanced landscape for precious metals in Pakistan.

GOLD’S TECHNICAL ANALYSIS: A PATH OF RESISTANCE AND SUPPORT

The gold market is currently at a critical juncture, with price movements suggesting a tense standoff between bullish momentum and pivotal resistance levels. A technical analysis reveals that gold bulls are encountering a formidable barrier near the 50-day Simple Moving Average (SMA), a key indicator closely watched by market participants for signs of future price direction.

THE BULLISH SCENARIO: BREAKING BARRIERS

For gold to continue its upward trajectory, a sustained break above the 50-day SMA is essential. Achieving this would not only confirm the market’s strength but also potentially usher in a new phase of recovery from the recent low of $1,984, a trough not seen in two months. The positive momentum, as indicated by daily chart oscillators gaining traction, suggests that such a breakout could indeed be on the horizon. Should this occur, gold prices may swiftly move towards an intermediate resistance zone around $2,044-$2,045, setting the stage for a possible push into the $2,065 supply zone.

THE BEARISH OUTLOOK: A DOWNWARD DRIFT

Conversely, if gold prices fail to conquer the 50-day SMA, immediate support is expected in the $2,016-$2,015 range. This level acts as a critical buffer ahead of the more significant 100-day SMA, situated just shy of the psychologically important $2,000 mark. A breach below this support could trigger increased selling pressure, potentially leading prices to revisit the monthly low near $1,984. A continued decline past this point would be a clear signal for bearish traders, potentially accelerating the descent towards the crucial 200-day SMA support around $1,965.

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