Gold per tola rate in Pakistan began the week with a positive shift, with 24-karat gold priced at Rs268,000 per tola, marking an increase of Rs1,700. In the domestic market, the Karachi Sarafa Association reported the price of 24-karat gold at Rs229,767 per 10-gram, up by Rs1,458. Additionally, 22-karat gold was priced at Rs210,620 per 10-gram.
GLOBAL SPOT GOLD UP SLIGHTLY
Globally, spot gold traded near $2,581 an ounce, reflecting a modest gain of $2.2 or 0.08% from the previous session. The rise in gold prices comes as market participants anticipate significant monetary policy changes.
FEDERAL RESERVE TO LOWER INTEREST RATES
The Federal Reserve is set to initiate a crucial shift this week by lowering interest rates for the first time in over four years. This anticipated rate cut is expected to impact gold prices further as investors adjust their portfolios in response to the new monetary policy.
SILVER PRICES REMAIN STABLE
In contrast to the movement in gold prices, silver prices remained unchanged in the domestic market. The price of 24-karat silver stood at Rs2,950 per tola and Rs2,529 per 10-gram.
GOLD (XAU/USD)
Gold (XAU/USD) has slightly retreated from its record high of $2,590 earlier this week, now trading around $2,581-2,582 amid profit-taking and positive market sentiment. Despite this pullback, gold’s downside remains limited due to expectations of aggressive Fed rate cuts.
Markets are anticipating a 50 basis points rate cut by the Federal Reserve this week, following signs of cooling US inflation. This prospect is keeping US Treasury yields and the Dollar near 2024 lows, supporting gold prices.
Investors are awaiting the outcome of the FOMC policy meeting starting Tuesday, which could influence gold’s direction. Additionally, upcoming meetings from the Bank of England and the Bank of Japan later this week could add market volatility and impact gold.
Global uncertainties, including the ongoing Russia-Ukraine conflict and political unrest in the Middle East, continue to boost gold’s appeal as a safe haven. The recent assassination attempt on US Republican candidate Donald Trump also supports gold’s bullish outlook.
Technically, gold’s upward trend remains strong, with key resistance at $2,600 and immediate support around $2,565-2,564. A break below these levels could lead to further declines towards $2,500, though support around $2,470 is expected to limit losses.
