The price of 24 karat gold in Pakistan saw a notable decrease of Rs. 900 per tola, settling at Rs. 283,400 on Monday compared to Rs. 284,300 in the last trading session. Similarly, the price of 10 grams of 24 karat gold also dropped by Rs. 771, moving down to Rs. 242,970 from Rs. 243,741. The price of 10 grams of 22 karat gold declined to Rs. 222,722 from Rs. 223,430, as reported by the All Sindh Sarafa Jewellers Association. Notably, the prices of silver remained stable, with per tola silver priced at Rs. 3,350 and 10 grams at Rs. 2,872.08.
International Gold Market Dynamics
In the international market, gold (XAU/USD) fell over half a percent to trade in the $2,730 range on Monday, reflecting ongoing market fluctuations. The decline is largely attributed to reports indicating softening demand from China, the world’s largest gold consumer. The precious metal lost ground despite being supported by safe-haven flows due to escalating geopolitical tensions in the Middle East. Over the weekend, Israeli airstrikes targeted military installations in Iran, avoiding critical oil and nuclear facilities, which somewhat alleviated concerns over potential supply disruptions.
Adding to the gold market’s complexity, uncertainty surrounding the upcoming US presidential election and a general downtrend in global interest rates have made gold increasingly attractive as a non-interest-bearing asset.
Decline in Chinese Gold Demand
Recent data from the China Gold Association (CGA) highlighted a decline in gold consumption, reporting that total demand fell by 11.18% to 742 tons in the first three quarters of 2024 compared to the same period in the previous year. Notably, gold jewelry consumption saw a sharp decrease of 27.53%, totaling 400 tons, while demand for gold bars and coins rose by 27.14%, reaching 283 tons. The high price of gold was cited as a primary reason for the decline in jewelry consumption. Despite this, trading activity on the Shanghai Gold Exchange surged by 47.49% to 46,500 tons, indicating a continued interest in gold ETFs, which saw holdings rise to 91.39 tons, an increase of 29.93 tons from the end of 2023.
Technical Analysis: Sideways Trend
Gold’s price movements have entered a sideways trading band, fluctuating between $2,708 and $2,758. Although recent peaks were followed by a rollover, the long-term trend remains positive across various time frames. A decisive break above the resistance level of $2,758 could lead to further upward momentum, with the next significant target being the psychological level of $3,000.
Current Gold Prices
In the international market, gold prices decreased by $9, moving from $2,748 to $2,739. The interplay of local market dynamics and international trends continues to shape the gold landscape, making it essential for investors and stakeholders to remain vigilant amidst these changes.
