Gold Price Pakistan market today: the price of 24-karat gold in Pakistan experienced a significant drop, plummeting by Rs1,600 per tola to reach Rs213,700 from a day earlier Rs215,300.
10-gram 24-karat gold is currently selling for Rs183,213, a decrease of Rs1,372. 10-gram 22-karat gold is currently selling for 167,945, down from yesterday’s price of Rs169,203 .
At Rs2,600 per tola and Rs2,229.08 per 10-gram, 24-karat silver was selling for a steady price on the domestic market.
The dip in commodity prices was attributed to central bankers’ resistance against market expectations for interest rate cuts, causing a global selloff in stocks and bonds. European Central Bank President Christine Lagarde and Governing Council member Klaas Knot cautioned against aggressive bets on rate cuts, emphasizing the challenge in managing inflation. Federal Reserve Governor Christopher Waller also urged caution on easing, leading to a drop in market expectations for rate cuts by both the Fed and ECB.
It’s worth noting that when the Karachi Sarafa Association reported local rates, the international spot rate was down by $13. Last week marked the second consecutive decline in 24-karat gold prices in Pakistan.
GOLD INTERNATIONAL MARKET
The gold price (XAU/USD) has embarked on a short-term recovery, offering a momentary respite within an enduring downtrend. On Wednesday, the precious metal touched a fresh monthly low, testing the psychological support level of $2,000, before staging a modest bounce.
Despite this brief rebound, gold finds itself on uncertain ground as investors grapple with concerns over the Federal Reserve’s (Fed) impending decision on a long-awaited rate-cut cycle.
The precious metal’s trajectory remains influenced by the delicate balance between market dynamics and the central bank’s policy considerations.
Wednesday’s dip to a monthly low near $2,000 underscored the prevailing uncertainty, with investors closely monitoring the Fed’s signals.
The hesitation is fueled by apprehensions about the timing of the Fed’s move, as expectations for an imminent rate cut appear to be waning.
The underlying cause for this hesitancy lies in the United States’ economic landscape. The final stretch of inflationary pressures has proven more resilient than anticipated, attributed to robust consumer spending and a stable labor market. This unexpected resilience is contributing to the Fed’s cautious approach, creating uncertainty in the gold market.
XAUUSD
XAUUSD posted an intraday high of $2014.15 and intraday low of $2005.87. Gold is currently trading at $2011.34 (3:54pm Thursday, 18 January 2024 (GMT+5) Time in Pakistan).
GOLD PRICE TECHNICAL ANALYSIS: DOWNWARD TREND CONTINUES
Technical indicators, such as the 14-period Relative Strength Index (RSI), further underscore the bearish momentum. The RSI, currently hovering near the 40.00 mark, suggests a critical juncture. Should the RSI fail to sustain levels above 40.00, it could trigger a bearish momentum, adding to the downward pressure on gold prices.
Seizing the opportunity presented by a minor decline in the US Dollar Index, gold prices are currently working to establish stability near the psychological support level of $2,000. Despite these efforts, the short-term demand for the precious metal has shifted bearish, evidenced by a decline below the 50-period Exponential Moving Average (EMA) positioned at approximately $2,017.
