GOLD PER TOLA RATE IN PAKISTAN TODAY: Gold prices in Pakistan surged on Wednesday, with 24-karat gold being sold at Rs245,600 per tola, marking an increase of Rs600 per tola. This price adjustment reflects the ongoing fluctuations in the market. A day earlier Gold Per tola rate in Pakistan was Rs245,000.
It is worth noting that the price has been kept Rs2,500 below its actual cost today due to a reduction in purchasing power.
KARACHI SARAFA ASSOCIATION REPORTS PRICE HIKE
The Karachi Sarafa Association reported the price of 24-karat gold at Rs210,562 per tola per 10-gram, up by Rs514 per tola. Similarly, the price of 22-karat gold was quoted higher at Rs193,016 per 10-gram.
SILVER PRICES REMAIN UNCHANGED
On the other hand, silver prices remained stable in the domestic market, with 24-karat silver being sold at Rs2,900 per tola and Rs2,486 per 10-gram.
GOLD (XAU/USD) CONTINUES RECOVERY AFTER PBOC-RELATED SELLOFF
Gold (XAU/USD) is edging higher on Wednesday, continuing to recover after the PBoC-related sell-off on Monday.
This comes after data emerged showing that worldwide central bank demand for gold remains buoyant. This has balanced out the negative impact of the news that the largest consumer of gold, the People’s Bank of China (PBoC), stopped buying the precious metal in June – extending its parsimony for another month after it also closed its wallet in May – following an 18-month buying spree.
GOLD RISES DESPITE POWELL’S RELUCTANCE TO NAME A DATE
Gold shrugged off Federal Reserve (Fed) Chairman Jerome Powell’s testimony to the Senate Banking Committee on Tuesday, in which he refused to give a date for a first interest-rate cut, saying instead that the Fed would adopt a data-dependent approach to interest rates. Investors had been hoping for more concrete details of when the Fed would cut interest rates, and Powell’s mute retrenchment ought to have weakened gold more than it did. The reason for this is that delays in cutting rates might mean borrowing costs stay elevated for longer – a negative for gold as it keeps the opportunity cost of holding the precious metal high. Gold is a non-interest-bearing asset, which becomes less attractive to investors if they can earn higher interest elsewhere. At the same time, Powell did make some statements that acted as an antidote. For example, he acknowledged progress had been made on inflation and discounted the possibility of rate hikes. He also said there was a balance of risks to waiting too long (to cut interest rates) or acting too soon, suggesting a finely balanced situation.
GOLD STAYS BID ON NEWS OTHER CENTRAL BANKS ARE BUYING
Gold keeps its shine on Wednesday, trading in the $2,370s. The yellow metal finds upside momentum after it emerged that, despite the PBoC ceasing to increase its reserves, other major central banks were still buying substantial amounts of gold. “Other central banks continue to participate, with India’s central bank buying more than nine tons of gold in June, the National Bank of Poland increasing its gold reserves by four tons and the Czech National Bank showing that its gold reserves rose by some two tons in June. With these central banks continuing to build gold positions, it is quite evident that the official sector is much broader than just the PBoC,” said Bert Melek, Head of Commodity Strategy at TD Securities. To sum up, it is unlikely China’s absence from the market will prevent the commodity from rising to TD’s target of $2,475 in Q1 of 2025, according to TD’s Malek.
TECHNICAL ANALYSIS: GOLD CONTINUES SLOW RECOVERY
Gold is recovering for the second day in a row after it formed a bearish two-bar reversal pattern at the top of the early-July move. This pattern forms after a long green-up day is followed by a long red-down day of a similar length and size. It can be a sign of a short-term reversal.
