As the new week unfolds, domestic bullion markets in Pakistan witnessed a positive surge, with the price of 24-karat gold rising by Rs200 per tola to reach Rs217,900. As per reports a notable gain in the price of 10-gram 24-karat gold, standing at Rs186,814, reflecting an increase of Rs386. Meanwhile, the price of 10-gram 22-karat gold reached Rs171,246.
In contrast, silver maintained its stability in the domestic market, with 24-karat silver being traded at Rs2,650 per tola and Rs2,271.94 per 10-gram.
On the global front, the international spot gold market showed positive momentum, currently trading at 2,053.74, marking an increase of $4.92 or 0.24% for the day. However, it’s worth noting that the spot rate in the international market had experienced a surge of over $20 on Friday last week.
This positive turn in domestic gold prices follows a two-week consecutive decline in the value of 24-karat gold in Pakistan. Market analysts are closely monitoring these fluctuations as they navigate the dynamics of the precious metals market.
DOMESTIC GOLD PRICES EXTEND DECLINE FOR SECOND WEEK AMID CURRENCY STRENGTH PREVIOUS WEEK
The downturn persisted for domestic bullion as the price of 24-karat gold dropped by Rs550 per tola, reaching Rs217,450, marking a second consecutive weekly decline. Closing the week, the Karachi Sarafa Association reported a gain of Rs950 per tola for 24-karat gold, with 10-gram 24-karat gold settling at Rs186,428, reflecting a gain of Rs814. Meanwhile, 10-gram 22-karat gold closed at Rs170,146.
Despite an international spot rate of $2,068 at the close, showing a $3 increase compared to the previous week, domestic gold prices faced a downside. The Middle East conflict concerns led to the safe-haven asset’s slight rise, but hawkish remarks from Federal Reserve officials limited the gains.
The Pakistani Rupee (PKR) marked its ninth consecutive weekly victory against the U.S. Dollar, strengthening its value. The International Monetary Fund (IMF) concluded the first review of Pakistan’s economic reform program, backed by the Stand-by Arrangement (SBA), boosting investor confidence. The relationship between domestic gold prices and the local Rupee is highlighted, as the metal, denominated in U.S. dollars, tends to fall when the home currency appreciates against the greenback.
TECHNICALLY
A breakthrough is noted at the crucial level of 2016.90 to validate a rally towards the next correctional level at 1977.46.
It is cruciallly important that a break above 2046.60 and then 2065.70 would reverse the expected trend lower and could even suggest that the market is trying to reverse its previous upward trajectory. Trading professionals should monitor these critical levels to gather insight into the direction that gold prices will take going forward.
XAUUSD
Banks generally predict that the price of gold will be between $1,950 and $2,200 per ounce in 2024, according to information obtained by Bloomberg from significant financial institutions.
XAUUSD posted an intraday high of $2058.67 and intraday low of $2045.89. Gold is currently trading at $2053.11 (4:42pm Monday, 15 January 2024 (GMT+5) Time in Pakistan).
