The price of 24-karat gold per tola fell by Rs. 700 on Tuesday, selling at Rs. 275,000, compared to Rs. 275,700 the previous day, according to the All Sindh Sarafa Jewellers Association. The price of 10 grams of 24-karat gold also dropped by Rs. 600, settling at Rs. 235,768 from Rs. 236,368. Similarly, the price of 10-gram 22-karat gold decreased to Rs. 216,121 from Rs. 216,671.
Meanwhile, the price of silver remained stable, with per tola silver holding at Rs. 3,050, and 10 grams at Rs. 2,614.88.
In the international market, gold prices declined by $6, reaching $2,653 from $2,659. Despite some support from geopolitical risks, particularly in the Middle East, the price of gold has been weighed down by sustained US dollar strength and expectations of a less aggressive easing of monetary policy by the US Federal Reserve.
Geopolitical Risks and Dollar Strength
Gold, typically a safe-haven asset, found some support due to escalating tensions in the Middle East, including Israel’s response to Hezbollah’s drone attack. However, the rising US dollar, buoyed by speculation of a cautious approach by the Fed in cutting interest rates, has kept gold prices in check. Fed Governor Christopher Waller and Minneapolis Fed President Neel Kashkari both highlighted the strong US job market and economic resilience, suggesting a more conservative approach to rate cuts, which has bolstered the dollar.
Technical Outlook: Resistance and Support Levels
Technically, gold prices are facing resistance near the $2,666-$2,667 region, with potential to move towards the $2,685-$2,686 all-time high if this level is broken. However, immediate support lies near the $2,630 level. A failure to defend this support could lead to a further decline, potentially driving prices toward the $2,560-$2,535 range.
