In the ever-watchful eyes of the bullion market, a slight yet noticeable shift occurred this Tuesday. The Pakistan Gold Traders, alongside their global counterparts, are on the edge of their seats as the release of the US Federal Reserve’s meeting minutes from January 30/31 looms over the horizon.
THE CURRENT STATE OF GOLD
The pulse of the market showed a modest but significant heartbeat as the price of 24-karat gold rose by Rs150 per tola, reaching a new landmark of Rs214,450. This uptick, reported by the Karachi Sarafa Association, is a testament to the cautious optimism pervading the market. Similarly, the 10-gram 24-karat gold segment saw a rise of Rs128, settling at Rs183,856, while its 22-karat counterpart edged up to Rs168,535, marking a subtle yet hopeful gain.
XAUUSD posted an intraday high of $2027.39 and intraday low of $2015.08. Gold is currently trading at $2027.40 (5:08pm Tuesday, 20 February 2024 (GMT+5) Time in Pakistan). A day earlier gold was trading at $2015.52 (8:53pm Monday, 19 February 2024 (GMT+5) Time in Pakistan).
SILVER’S STEADY STANCE
Contrary to the gentle stir in gold prices, silver maintained its ground without a whisper of change. The price for a tola of 24-karat silver remained fixed at Rs2,580, and the 10-gram silver held its value at Rs2,211.93. This stability reflects a different facet of the bullion market’s response to global economic cues.
REFLECTING ON LAST WEEK’S PERFORMANCE
The backdrop to this week’s cautious optimism is last week’s performance, where domestic gold prices dipped into the red, influenced by a downturn in international prices. However, the international spot gold price hovered around $2,021, marking a 0.2% change from the previous session, suggesting a landscape of global economic variables at play.
AWAITING THE FEDERAL RESERVE’S INSIGHTS
The anticipation builds as the minutes from the Fed’s January policy meeting are expected to be released on Wednesday. These minutes are more than just a record; they are a beacon that could signal the direction of global monetary policy, potentially impacting markets far beyond the shores of the US. The bullion market, with its inherent sensitivity to such policy shifts, watches and waits, ready to respond to the insights that these minutes may unveil.
In conclusion, the subtle movements in gold and silver prices in Pakistan’s domestic market are a prelude to potentially more significant shifts. As traders and investors alike await the Federal Reserve’s meeting minutes, the bullion market stands as a reflection of the broader economic sentiments and uncertainties that define our times.
TECHNICAL ANALYSIS AND FUTURE OUTLOOK:
Gold’s recovery, marked by its return to near the 20-day Exponential Moving Average (EMA) around $2,022, signals a bullish outlook if sustained. However, a downward-sloping trendline from late December poses resistance, with the Relative Strength Index (RSI) indicating a sideways market trend.
