GOLD PER TOLA RATE IN PAKISTAN: The price of 24-karat gold increased by Rs.1,200 per tola, selling at Rs.253,500 on Wednesday, compared to Rs.252,300 on the last trading day, according to the All Sindh Sarafa Jewellers Association.
GOLD PRICE SURGES TO $2,420 AMID MIDDLE EAST TENSIONS
Gold price (XAU/USD) exhibited a strong performance in Wednesday’s American session, with the precious metal climbing to near $2,420. This surge comes as investors seek the safe-haven appeal of gold amid escalating fears of a broader Middle East conflict following reports of Hamas leader Ismail Haniyeh being killed in an Israeli airstrike on Tehran. The potential for retaliatory actions by Iran has increased concerns of a significant geopolitical escalation, further driving gold prices higher.
US DOLLAR WEAKENS AFTER DISAPPOINTING ADP EMPLOYMENT DATA
At the same time, the US Dollar (USD) slid further as the latest ADP Employment report showed weaker-than-expected hiring in the US private sector, with only 122K jobs added in July, compared to expectations of 150K. This has caused the US Dollar Index (DXY) to dip below the critical 104.00 support level, while 10-year US Treasury yields dropped to a four-month low at 4.11%.
FEDERAL RESERVE MEETING IN FOCUS
Gold’s rally is further bolstered by anticipation of the Federal Reserve’s (Fed) monetary policy outcome later today. The Fed is widely expected to leave interest rates unchanged, but investors are keenly awaiting guidance on future rate cuts. The CME FedWatch tool indicates a potential 25 basis points rate cut in the September meeting, with some expectations of two rate cuts by year-end.
TECHNICAL ANALYSIS: GOLD MAINTAINS STRONG POSITION ABOVE $2,400
Gold continues to trade within a rising channel on the daily timeframe, with strong support from the 50-day Exponential Moving Average (EMA) near $2,366. The 14-day EMA suggests market indecisiveness, and a break above the all-time high of $2,483.75 could propel gold into uncharted territory. However, downside support remains strong near $2,225, based on the upward trendline from October lows.
10 GRAMS OF GOLD ALSO SEES INCREASE
The price of 10 grams of 24-karat gold rose by Rs.1,029 to Rs.217,335 from Rs.216,306. Similarly, the price of 10 grams of 22-karat gold increased to Rs.199,224 from Rs.198,281.
SILVER PRICES ALSO CLIMB
The price of per tola silver increased by Rs.40, now selling at Rs.2,900. The price of 10 grams of silver also went up by Rs.28.30 to Rs.2,486.28.
INTERNATIONAL GOLD MARKET UPDATE
In the international market, the price of gold increased by $27, reaching $2,415 from $2,388, as reported by the Association.
