On Tuesday, gold prices in Pakistan declined with 24-karat gold now priced at Rs283,200 per tola, marking a decrease of Rs500. The 10-gram price of 24-karat gold also dropped by Rs429 to Rs242,798, and the 22-karat gold rate fell to Rs222,565 per 10 grams, as reported by the Karachi Sarafa Association.
Global Market Overview
In the international market, gold held near the $2,735 per ounce level, showing resilience amid uncertain market conditions. The close race in the U.S. presidential election and heightened geopolitical tensions in the Middle East have supported demand for gold as a safe-haven asset. These factors, combined with the unwinding of the “Trump trade” and rising expectations of further interest rate cuts from the Federal Reserve, have helped to suppress U.S. Treasury yields and weakened the USD. This environment has generally been favorable for gold, keeping it attractive to investors seeking a hedge against volatility.
However, some caution remains, as traders await key events later this week, including the U.S. election results and the FOMC meeting. Markets are closely watching these developments as they may impact the direction of U.S. monetary policy and the dollar, which in turn would influence gold prices.
Technical Outlook for Gold
From a technical standpoint, gold’s support is currently around $2,720-$2,715. A drop below this range could lead to further selling, with potential support near $2,690. Conversely, resistance levels are found at $2,748-$2,750, with stronger resistance at $2,790 and the $2,800 mark. A breakout above $2,820 would likely signal renewed bullish momentum, potentially extending the current uptrend.
Market Sentiment
According to Han Tan, Exinity Group’s Chief Market Analyst, the market is largely cautious. Many investors may refrain from strong directional bets on gold until after early indications from the U.S. election results. Expectations suggest that a Harris victory could support higher gold prices due to policies that may keep interest rates low, whereas a Trump win might lead to a stronger dollar and dampen gold’s appeal. In either case, analysts project that gold could reach $2,800 once market uncertainty subsides post-election.
Overall, both domestic and international gold prices remain sensitive to the ongoing political and economic developments, with investors keenly awaiting more clarity on key events in the U.S.
