GOLD PER TOLA RATE IN PAKISTAN: Gold prices in Pakistan edged higher on Monday, with 24-karat gold selling at Rs275,700 per tola, marking an increase of Rs200. Over the past week, gold prices remained near their peak, with only a slight drop of Rs500 per tola.
According to the Karachi Sarafa Association, the price of 24-karat gold per 10 grams rose by Rs171 to Rs236,368, while 22-karat gold increased to Rs216,671 per 10 grams.
Meanwhile, silver prices in the domestic market remained stable, with 24-karat silver priced at Rs3,050 per tola and Rs2,615 per 10 grams.
In the international market, spot gold traded at around $2,657 an ounce, up by $6.9 or 0.26% from the previous session.
GOLD PRICE UNDER PRESSURE AMID US DOLLAR STRENGTH AND GEOPOLITICAL RISKS
Gold (XAU/USD) continues to trade with a negative bias for the fourth consecutive session on Monday, though the downside remains limited as the metal is confined within a familiar trading range. The price pressure on gold comes as the US Dollar hovers near a seven-week high, following Friday’s strong US jobs report. This report reduced market expectations for aggressive policy easing by the Federal Reserve, making it harder for the non-yielding precious metal to gain traction.
Additionally, global equity markets’ bullish tone has weakened gold’s appeal as a safe-haven asset. However, persistent geopolitical tensions in the Middle East—particularly Israel’s military actions in Gaza and Lebanon—continue to provide some support for gold. Traders remain cautious ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday and US inflation data on Thursday, both of which could impact gold’s short-term outlook.
KEY MARKET MOVERS:
- US Dollar Strength:
- Friday’s strong US employment data reduced expectations for aggressive rate cuts by the Federal Reserve. The economy added 254,000 jobs in September, and unemployment fell to 4.1%, indicating resilience in the labor market. As a result, the US Dollar has remained elevated, putting pressure on gold prices.
- FOMC Expectations:
- Market participants now see a 95% chance of a 25 basis point rate cut in the Federal Reserve’s November meeting. This has kept the 10-year US Treasury yield near 4%, further limiting gold’s upward momentum.
- Geopolitical Risks:
- Escalating tensions in the Middle East, with Israel intensifying its attacks on Gaza and Hezbollah’s retaliatory actions, raise the potential for broader conflict. These risks continue to lend support to gold’s safe-haven appeal, mitigating more significant price drops.
- Technical Outlook:
- Gold remains in a consolidation phase after its recent rally to record highs. Oscillators show that the metal’s upward momentum is still intact, though a break above $2,670-$2,672 is needed to confirm bullish sentiment. Key support is around $2,630, and a breach below this level could lead to further declines towards $2,600 or lower.
TECHNICAL LEVELS TO WATCH:
- Resistance:
- Immediate resistance is seen at $2,670-$2,672, with a break above this level opening the path toward the $2,685-$2,686 zone and eventually $2,700.
- Support:
- Key support lies at $2,630, with a downside break likely leading to further weakness towards $2,600, followed by $2,560 and $2,530.
In summary, gold’s short-term direction is being influenced by a strong US Dollar and mixed geopolitical signals. However, the metal remains well-supported amid the current global uncertainty, especially in light of ongoing geopolitical risks and crucial upcoming economic data.
