GOLD PER TOLA RATE IN PAKISTAN TODAY: On Thursday, gold prices in Pakistan experienced an increase, with 24-karat gold being sold at Rs241,000 per tola, marking a Rs400 rise per tola. The Karachi Sarafa Association reported that the price of 24-karat gold per 10 grams rose to Rs206,619, an increase of Rs343 per tola. Similarly, the price of 22-karat gold was quoted higher at Rs189,400 per 10 grams.
In contrast, silver prices in the domestic market remained unchanged. The price of 24-karat silver stood at Rs2,850 per tola and Rs2,443 per 10 grams.
GLOBAL MARKET OVERVIEW
On the global front, spot gold traded near $2,304 an ounce, up by $5.6 or 0.24% from the previous session. Gold has been steadily moving towards key support levels, particularly the neckline of a possible topping pattern at $2,279. A break below this neckline could signal a strong downward movement.
The XAU/USD pair had been forming a bearish Head-and-Shoulders (H&S) pattern over the last three months. However, the upside break on June 20 has brought the validity of this pattern into question. Despite this, a more complex topping pattern that might still prove bearish could be forming. If a break below the pattern’s neckline at $2,279 occurs, it would confirm a reversal lower, with a conservative target at $2,171, and a second target at $2,105.
Conversely, gold could still find support and continue higher. The original break above the trendline and the 50-day SMA on June 20 was expected to reach an initial target in the mid-$2,380s, and this target remains attainable despite the fallback. A break above $2,350 would confirm a move up to the June 7 high, and further gains could lead to a continuation up to the all-time high at $2,450, confirming a broader uptrend.
FUNDAMENTAL OVERVIEW
Gold (XAU/USD) edged higher on Thursday, trading just above $2,300 as short-traders took profit following the recent downturn from the $2,330s. The yellow metal has been pressured by comments from Federal Reserve (Fed) officials, who have consistently stated that more progress is needed in reducing inflation before they can consider cutting interest rates. This reluctance to cut rates makes non-interest-paying assets like gold less attractive to investors. A day earlier!
Gold’s downside is currently capped by several long-term positive factors, including its role as a safe haven amid global geopolitical uncertainty, the impact of AI-driven economic changes, and climate change threats. Additionally, the strong US Dollar has led to a steep depreciation in mainly Asian currencies, prompting regional central banks to hoard gold as a hedge.
Another positive factor is the BRICS trade confederation’s strategy to use gold as a replacement for the US Dollar in global trade, positioning gold as a stable and reliable means of exchange between nations with volatile currencies.
