GOLD PER TOLA RATE IN PAKISTAN: Gold prices in Pakistan fell from near-peak levels on Wednesday, with 24-karat gold being sold at Rs271,700 per tola, marking a Rs3,000 decrease. The drop comes as international gold prices softened, with spot gold trading near $2,619 an ounce, down $3.2 or 0.12% from the previous session.
According to the Karachi Sarafa Association, the price of 24-karat gold per 10-gram also dropped by Rs2,572 to Rs232,939. Meanwhile, 22-karat gold was priced lower at Rs213,527 per 10-gram.
In contrast, silver prices in the domestic market remained stable despite a sharp decline in global silver rates. The price of 24-karat silver held firm at Rs3,050 per tola and Rs2,615 per 10-gram. Globally, spot silver remained steady after losing over 3% in the previous trading session.
The decline in gold prices aligns with easing international trends, though domestic silver prices appear resilient against the recent fluctuations in the global market.
Gold Price XAU/USD Continues Decline as US Dollar Strengthens Amid Fed Rate Speculations
The price of gold (XAU/USD) extended its losing streak for the sixth consecutive day on Wednesday, pressured by a strengthening US Dollar (USD) as traders scale back expectations of a larger Federal Reserve (Fed) interest rate cut in November. The precious metal’s decline comes as the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, surged near 102.70, making gold a more expensive investment for international buyers.
Despite a drop in 10-year US Treasury yields to around 4.02%, close to a two-month high, the higher yields on interest-bearing assets have increased the opportunity cost of holding non-yielding assets like gold, further contributing to its decline.
Robust US economic data, including stronger-than-expected Nonfarm Payrolls (NFP) and wage growth for September, has reduced concerns about an economic slowdown, causing traders to reassess the likelihood of a large Fed rate cut. However, escalating geopolitical tensions in the Middle East, particularly the conflict between Israel and Hezbollah, are limiting gold’s downside. Historically, gold gains appeal as a safe-haven asset during times of geopolitical unrest.
Key Market Movers:
- US Dollar Surge: The strengthening USD continues to weigh on gold prices as investors move toward dollar-denominated assets.
- FOMC Minutes: Investors are closely watching for insights from the Federal Open Market Committee (FOMC) September meeting minutes, set to be released later on Wednesday. These could provide further clues about the Fed’s economic outlook and rate cut plans.
- Inflation Data: The upcoming US Consumer Price Index (CPI) data for September, to be released on Thursday, is expected to influence market sentiment and Fed policy expectations, with core CPI forecasted to rise by 3.2%.
Technical Analysis:
Gold prices have slipped to near $2,610, down from the all-time high of $2,685. However, the overall trend remains bullish, supported by the 20- and 50-day Exponential Moving Averages (EMAs), which are both sloping upward. The 14-day Relative Strength Index (RSI) remains in the neutral 40.00-60.00 range, indicating a weakening of momentum but keeping the broader upward trend intact.
Traders will continue to monitor geopolitical developments and economic data for further direction in the gold market.
