Gold prices in Pakistan witnessed a notable decline on Monday, reflecting global market trends. The price of 24-karat gold fell by Rs1,700 per tola, settling at Rs274,500, according to the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA). This decline mirrors a broader trend in international markets, where spot gold was trading near $2,635 per ounce, down $10.5 or 0.40% from the previous session.
Domestic Gold Market Overview
- 24-Karat Gold:
- Per Tola: Rs274,500 (down Rs1,700)
- Per 10 Grams: Rs235,340 (down Rs1,457)
- 22-Karat Gold: Rs215,728 per 10 grams.
Meanwhile, silver prices in Pakistan remained steady:
- 24-Karat Silver: Rs3,400 per tola and Rs2,915 per 10 grams.
Global Gold Trends: Key Drivers Behind the Decline
The drop in gold prices is largely attributed to a stronger US Dollar (USD) and rising US Treasury bond yields. Both factors have weighed heavily on the non-yielding asset, creating headwinds for gold’s bullish trajectory.
Factors Influencing Gold Prices Globally:
- US Dollar Recovery:
- The USD rebounded from a three-week low due to higher bond yields.
- US Bond Yields Surge:
- Investors anticipate that inflationary pressures could push the Federal Reserve to pause rate cuts.
- Geopolitical and Economic Concerns:
- Uncertainty around trade policies, such as potential tariffs proposed by US President-elect Donald Trump, adds volatility to the market.
Technical Analysis: What Lies Ahead for Gold?
Gold prices (XAU/USD) are trading near the lower boundary of a descending channel, signaling bearish pressure. Key technical insights include:
- Support Levels:
- Immediate support at $2,600 per ounce.
- A breach could lead to a further decline toward the 100-day Simple Moving Average (SMA) near $2,575.
- Resistance Levels:
- Short-term resistance is at $2,642-$2,643.
- A break above $2,665 may signal recovery toward the $2,700 mark.
Broader Market Influences
Global macroeconomic data is expected to play a pivotal role in shaping gold prices in the coming days. The ISM Manufacturing PMI and other US economic indicators could drive the USD and, in turn, influence gold prices.
