Gold prices in Pakistan fell on Tuesday, with 24-karat gold being sold at Rs250,500 per tola, down Rs500. The Karachi Sarafa Association reported the price of 24-karat gold at Rs214,763 per 10-gram, a decrease of Rs429. Similarly, the price of 22-karat gold dropped to Rs196,866 per 10-gram.
SILVER PRICES REMAIN UNCHANGED
Meanwhile, silver prices remained stable in the domestic market. 24-karat silver is being sold at Rs2,920 per tola and Rs2,503 per 10-gram.
GLOBAL GOLD MARKET STABILITY
On the international front, spot gold held near $2,395 an ounce, showing little change from the previous session. Gold price (XAU/USD) found support near the $2,400 resistance level in Tuesday’s European session. This stability comes as US bond yields decline amid strong speculation that the Federal Reserve will begin lowering its key borrowing rates from September, with 10-year US Treasury yields falling near 4.23%.
POLITICAL FACTORS INFLUENCING GOLD PRICES
Earlier, gold prices were pressured by expectations of Donald Trump potentially winning the upcoming US presidential elections in November. This speculation increased following an assassination attempt on Trump and President Joe Biden’s withdrawal from the re-election race, with Vice President Kamala Harris becoming the Democratic nominee.
INFLATION EXPECTATIONS AND MARKET RESPONSE
Australian investment bank Macquarie noted that a Trump 2.0 administration would likely implement more inflationary policies, including restricted immigration, higher tariffs, and an extension of the Tax Cut and Jobs Act of 2025. This scenario is seen as favorable for the US Dollar, with the US Dollar Index (DXY) rising to near 104.50.
INDIA’S GOLD MARKET MOVEMENTS
In India, gold prices fell below Rs. 69,000 on the Multi Commodity Exchange (MCX) after the government reduced the basic custom duty on precious metals from 10% to 6% in the Fiscal Budget 2024-2025. This move is expected to boost demand for physical gold.
UPCOMING ECONOMIC DATA AND GOLD PRICE OUTLOOK
Investors are awaiting a series of US economic data, including the preliminary US S&P Global PMI for July, Q2 GDP, and June’s Durable Goods Orders and PCE Price Index, which will provide further insights into the Federal Reserve’s next moves on interest rates. The FedWatch tool indicates that the central bank may start lowering rates in September, with additional cuts expected in November or December.
TECHNICAL ANALYSIS
Gold prices have risen above $2,400, supported by the 20-day Exponential Moving Average around $2,390. The 14-day Relative Strength Index (RSI) suggests that the upside momentum has stalled but remains intact. A new upside breakout could occur if gold prices surpass all-time highs above $2,480.
