GOLD PER TOLA RATE IN PAKISTAN TODAY: Karachi, Pakistan — Gold prices in Pakistan saw an upward trend on Monday, with the price of 24-karat gold rising to Rs251,000 per tola, marking an increase of Rs1,000. The Karachi Sarafa Association reported that 24-karat gold also saw a rise, priced at Rs215,192 per 10-gram, up Rs857. Similarly, the price of 22-karat gold climbed to Rs197,260 per 10-gram.
In contrast, silver prices remained stable in the domestic market. The price of 24-karat silver held steady at Rs2,920 per tola and Rs2,503 per 10-gram.
Global Market Insights
On the international front, spot gold traded near $2,407 an ounce, experiencing a slight decline of $4.5 or 0.19% from the previous session. Despite this dip, gold found support around the key $2,400 level during Monday’s European session. This price stabilization comes amidst heightened political uncertainty in the United States, with Vice President Kamala Harris nominated to lead the Democrats against the Donald Trump-led Republicans following President Joe Biden’s withdrawal from the re-election race.
Impact on the US Dollar and Treasury Yields
The nomination of Kamala Harris has introduced further political volatility in the US, affecting the performance of the US Dollar. The US Dollar Index (DXY), which measures the dollar’s value against six major currencies, slightly retracted to 104.20 on Monday after recovering from a four-month low of 103.65. Earlier, increased prospects of Trump’s victory had fueled a recovery in the US Dollar, as his policies are seen as favorable for economic growth, including potential corporate tax cuts and lower interest rates. These factors have raised consumer inflation expectations and the likelihood of further trade restrictions under a Republican administration.
Meanwhile, the yield on 10-year US Treasury bonds declined to 4.22%. Lower yields on interest-bearing assets reduce the opportunity cost of investing in non-yielding assets like gold, making the precious metal more attractive.
Market Expectations and Economic Indicators
Gold prices are expected to remain in focus this week as investors await a slew of US economic data. Key indicators include the preliminary S&P Global Purchasing Managers Index (PMI) for July, Q2 Gross Domestic Product (GDP), and the Durable Goods Orders and Personal Consumption Expenditure Price Index (PCE) for June. Market forecasts suggest a slower pace of PMI expansion compared to the previous month, while GDP is anticipated to grow at a robust annualized rate of 2.0%, up from the previous 1.4%.
Investors will closely monitor the core PCE inflation data, the Federal Reserve’s preferred inflation gauge, which is projected to increase by 0.2% on a monthly basis, up from the previous 0.1%. Financial markets currently expect the Fed to start lowering interest rates in September, with two rate cuts anticipated this year.
Technical Analysis
From a technical standpoint, gold prices are trading near the $2,400 mark, approaching the 20-day Exponential Moving Average (EMA) around $2,390, indicating that the near-term outlook remains stable. The advancing trendline from the February 14 low at $1,984.30 is expected to provide strong support for gold bulls.
The 14-day Relative Strength Index (RSI) has dropped into the 40.00-60.00 range, suggesting a stall in upward momentum. However, the overall bias remains positive, with a potential fresh upside if gold prices break above the all-time high of around $2,480.
