The gold market witnessed a notable decrease in prices, marking a significant shift for investors and enthusiasts alike. On a recent Wednesday, the cost of one tola of 24 karat gold saw a reduction of Rs1,100, settling at Rs 214,800. This marked a downturn from its previous rate of Rs 215,900, as reported by the last trading session. This change signifies a noteworthy adjustment in the market, reflecting broader economic trends and investor sentiments.

UNDERSTANDING THE NUMBERS

Diving deeper into the specifics, the price for 10 grams of 24 karat gold also experienced a decrease, dropping by Rs944 to rest at Rs184,156, down from Rs185,100. Meanwhile, the price for 10 grams of 22 karat gold adjusted downwards to Rs168,810 from Rs169,674. These figures, provided by the All Sindh Sarafa Jewellers Association, offer a clear view of the current state of the gold market, highlighting the fluctuations that are part and parcel of precious metal trading.

SILVER: A STEADY CONTENDER

In contrast to gold, the silver market displayed remarkable stability during the same period. Prices for both per tola and ten-gram units of silver remained unchanged, holding steady at Rs2,570 and Rs2,203.36, respectively. This constancy in silver prices provides a fascinating counterpoint to the volatility observed in the gold market, suggesting diverse factors at play across different segments of the precious metals market.

GLOBAL INFLUENCES

On the international stage, the price of gold also faced a downturn, with a decrease of $08, bringing it to $2,048 from the previously recorded $2,056. This global price adjustment is a critical element of the broader narrative, underscoring the interconnectedness of local and international markets. The dynamics of global trade, economic policies, and investor confidence all play roles in shaping the prices of precious metals on the world stage.

GOLD (XAU/USD): TECHNICAL STANDOFF

RESISTANCE AT THE HORIZON

Technical analysis reveals that gold prices are currently wrestling with a critical resistance area located between $2,041 and $2,042. This level, having been touched just last Thursday, marks a more than two-week high and serves as a formidable barrier potentially capping any upward movements. The importance of this range cannot be overstated, as it represents a pivotal point for traders eyeing short-term price directions.

THE BREAKTHROUGH POTENTIAL

A closer look at the daily chart shows a budding optimism among traders, as oscillators begin to show signs of positive momentum. Should gold prices muster the strength to sustainably push beyond this immediate hurdle, it would signify a significant technical breakthrough, breaching the 50-day Simple Moving Average (SMA) barrier. Such a move could set the stage for further advances, with eyes set on the next key resistance near $2,065, and eventually, the quest towards the $2,100 mark.

XAUUSD posted an intraday high of $2033.80 and intraday low of $2024.60. Gold is currently trading at $2024.11 (3:51pm Wednesday, 28 February 2024 (GMT+5) Time in Pakistan). A day earlier gold was trading at $2038.53 (1:40pm Tuesday, 27 February 2024 (GMT+5) Time in Pakistan).

XAUUSD_2024-02-28_15-50-57

SUPPORTING ROLES AND BEARISH THREATS

On the flip side of this bullish scenario lies a network of support levels ready to catch any potential fallbacks. The weekly low, lingering around the $2,025 mark, acts as the first line of defense against downward pressures. Following closely are the more substantial supports framed by the 100-day SMA, positioned near $2,011 to $2,010, and the psychologically significant $2,000 threshold.

Should gold prices succumb to selling pressures below these critical supports, the market’s sentiment could shift markedly in favor of bears. Such a scenario could see gold tumbling towards the $1,984 level, and possibly, extend losses to the crucial 200-day SMA support near $1,967, marking a significant retracement in its pricing dynamics.

 

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