GOLD PER TOLA RATE IN PAKISTAN TODAY
Gold prices in Pakistan increased on Wednesday, with 24-karat gold being sold at Rs242,300 per tola, up Rs800 per tola. The price has been kept Rs3,000 below its actual cost today due to a reduction in purchasing power.
The Karachi Sarafa Association reported the following prices:
- 24-Karat Gold:
Rs207,733 per 10-gram, up Rs686 per tola. - 22-Karat Gold:
Rs190,422 per 10-gram.
SILVER PRICE REMAINS UNCHANGED
Silver prices remained unchanged in the domestic market:
- 24-Karat Silver:
Rs2,850 per tola and Rs2,443 per 10-gram.
GLOBAL GOLD PRICE UPDATE
On the global front, spot gold traded near $2,347 an ounce, up $17.5 or 0.75% from the previous session. Stay updated with the latest trends and movements in the global gold market.
GOLD RALLIES IN RESPONSE TO FED CHAIR POWELL’S SPEECH
Gold (XAU/USD) rallied into the $2,340s on Wednesday as investors continued to digest Federal Reserve Chairman Jerome Powell’s speech from Tuesday. The shift in monetary policy stance reflected in his words has contributed to the surge.
SUPPORT FROM LONG-TERM INVESTORS
Long-term investors are engaging in “bargain hunting,” accumulating gold before another anticipated rally. Multiple global factors continue to favor the precious metal over the long term.
TECHNICAL ANALYSIS: 50-DAY SMA
Gold is attempting to penetrate the crucial 50-day Simple Moving Average (SMA), which has been limiting its gains for several days. A bullish close on Wednesday could signal a fresh upside for the yellow metal.
FED CHAIR POWELL REINFORCES RATE-CUT HOPES
Fed Chair Powell’s speech has bolstered market expectations of a rate cut in September. He acknowledged significant progress in tackling inflation, stating that the Fed is nearing its target.
- Progress on Inflation:
Powell noted considerable progress but emphasized the need for more data to confirm the trend towards the Fed’s 2.0% inflation target before implementing rate cuts. - Risk of Rate Cut Timing:
Powell highlighted the risk of cutting rates too late or too early, adding complexity to the Fed’s decision-making process.
PCE PRICE INDEX IMPACT
The Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, fell to 2.6% for both headline and core inflation in May. This supports the cautious stance the Fed has adopted after earlier misjudgments in Q1.
- Market Probability:
The CME FedWatch tool indicates a 65% probability of a first-rate cut in or before September.
GLOBAL FACTORS BOOST GOLD VALUE
Broader global factors are also enhancing gold’s value:
- Geopolitical Conflicts:
Ongoing conflicts in the Middle East and Ukraine, along with political shifts in Europe, are driving investors towards gold as a safe haven. - US Political Uncertainty:
The Supreme Court’s decision regarding former President Donald Trump and concerns over President Joe Biden’s fitness for office are increasing the chances of a second Trump presidency, potentially destabilizing global security. - BRICS Expansion:
The BRICS trading confederation is challenging the dominance of the US Dollar, with gold emerging as a realistic alternative for international trade for countries avoiding Dollar-denominated markets.
TECHNICAL ANALYSIS: GOLD BREAKS ABOVE 50-DAY SMA
Gold is pushing higher, piercing the 50-day SMA on an intraday basis. Closing above this key resistance level could mark the start of a more bullish phase for gold.
- Invalidated H&S Pattern:
XAU/USD has twice broken above a trendline associated with a Head and Shoulders (H&S) pattern, which initially had bearish implications. These breaks invalidate the pattern, although there remains a lesser chance of a more complex topping pattern
