Karachi: Gold prices in Pakistan climbed on Monday as the 24-karat gold rate reached Rs283,700 per tola, marking a Rs700 increase, while on the international market, gold inched up to $2,740 per ounce, up by 0.06%. The Karachi Sarafa Association also reported a rise in the price of 24-karat gold to Rs243,227 per 10 grams, up by Rs600, with 22-karat gold now quoted at Rs222,958 per 10 grams.
Gold’s price movement in global markets has been largely influenced by a weaker US Dollar, increased safe-haven demand, and a political landscape riddled with uncertainty. A Bloomberg survey last week indicated that if Republican candidate Donald Trump wins the US election, gold prices are expected to continue rising. Conversely, a victory by Vice President Kamala Harris could lead to a retreat in gold prices, with current odds suggesting a tight race between the candidates.
In the international market, spot gold (XAU/USD) has found renewed support amid softening USD, a response to traders scaling back on bets favoring a Trump win. October’s “Trump trade” had previously pushed the dollar up due to expectations that inflationary policies under his leadership would keep US interest rates high, attracting foreign investment. However, election forecasters now see the race as a toss-up, adding a layer of uncertainty that has buoyed gold prices further.
Gold’s resilience is also linked to speculation that the US Federal Reserve may cut interest rates by 50 basis points after the election to mitigate market volatility. Lower rates generally favor gold, a non-yielding asset, making it an attractive option for investors in uncertain times.
Geopolitical tensions are another catalyst for gold’s gains, with Iran threatening to launch another strike against Israel in response to recent bombings. Iran’s supreme leader, Ayatollah Ali Khamenei, warned on Saturday that both the US and Israel would face a “crushing response.” The rising geopolitical risk has added to gold’s safe-haven demand, attracting trend-following hedge funds that continue to hold long positions, according to the latest Commitment of Traders report.
Technical Analysis:
Gold remains within a familiar range, fluctuating between $2,709 and $2,759, with resistance poised at the $2,790 all-time high. Should prices break this level, analysts expect further gains to key resistance levels at $2,800 and $2,850. Conversely, a pullback might find support at $2,709, which could still align with an overall uptrend.
Silver Prices Unchanged:
In the domestic market, silver prices remained stable, with 24-karat silver holding at Rs3,430 per tola and Rs2,941 per 10 grams.
Investors are now watching the US election and geopolitical developments closely, as both are expected to significantly impact gold’s trajectory in the weeks to come.
