Gold prices in Pakistan continued their upward trajectory on Tuesday, with the price of 24-karat gold per tola increasing by Rs.3,600 to Rs.273,500, according to the All Sindh Sarafa Jewellers Association. This marks a sharp rise from the previous day’s price of Rs.269,900.
The price for 10 grams of 24-karat gold also surged by Rs.3,086, settling at Rs.234,482, while 22-karat gold for 10 grams increased to Rs.214,942, up from Rs.212,113.
In contrast, silver prices remained steady, with per tola silver priced at Rs.3,250 and 10 grams at Rs.2,786.
Global Gold Prices and Trends
In the international market, gold prices climbed by $36, reaching $2,623 per ounce from $2,587. This marks the second consecutive day of gains, driven by geopolitical risks and a pullback in the US dollar.
Gold’s modest intraday gains were trimmed slightly during the European session, with prices hovering near the $2,620 level. Analysts suggest that while geopolitical tensions and a softer US dollar are supporting the precious metal, expectations of limited interest rate cuts by the Federal Reserve are capping its upside potential.
Key Global Drivers
- Geopolitical Risks: Continued conflicts in Ukraine and the Middle East have bolstered demand for safe-haven assets like gold.
- US Dollar Movement: The dollar’s retreat from its year-to-date highs provided additional support to gold prices.
- Federal Reserve Policy Outlook: Reduced expectations of aggressive rate cuts by the Fed are limiting gold’s rally.
Technical Analysis
Gold prices have crossed key technical levels, including the 23.6% Fibonacci retracement level, indicating potential for further gains. However, strong resistance is anticipated near the $2,634-$2,635 region. A sustained move beyond this level could trigger a rally towards the $2,655-$2,665 zone.
On the downside, immediate support lies at $2,600, with stronger support near $2,551-$2,550 (100-day SMA). A break below these levels could lead to a deeper correction toward $2,500.
Local Market Trends
Pakistan’s gold market remains sensitive to global price movements and currency fluctuations. The recent surge reflects international market trends and local demand dynamics. Investors and jewelers are closely monitoring global developments, particularly the US Federal Reserve’s monetary policy and geopolitical tensions.
Conclusion
Gold’s consistent rise highlights its appeal as a safe-haven asset amidst economic and geopolitical uncertainties. While the outlook remains bullish in the short term, price movements will likely depend on developments in global markets and central bank policies.
Disclaimer: Market prices are volatile and subject to rapid changes. Investors should consider global trends and local factors before making decisions.
