On Wednesday, the per tola price of 24 karat gold surged by Rs.500, reaching Rs.227,800 as reported by the All Sindh Sarafa Jewellers Association. This rise marks an increase from its previous sale price of Rs.227,300 on the last trading day. Similarly, the price of 10 grams of 24 karat gold saw a rise of Rs.429, reaching Rs.195,302 from Rs.194,873. The price of 10 grams of 22 karat gold also experienced an uptick, reaching Rs.179,027 from Rs.178,634.
As investors anticipate the Federal Reserve’s (Fed) monetary policy decision, the gold price (XAU/USD) remains under pressure. The Fed is expected to keep interest rates unchanged, given the ongoing battle against stubborn inflation in the United States. Market participants are eagerly awaiting the Fed’s dot plot and economic forecasts for insights into interest rate projections and the outlook on US economic performance.
EXPECTATIONS AND FED GUIDANCE
Investors will closely monitor Fed Chair Jerome Powell’s press conference for cues regarding the timing of rate cuts. Expectations for rate cuts in the June meeting have slightly eased, with Fed policymakers emphasizing the need for sustained evidence of inflation easing before considering adjustments. However, recent inflation data suggests persistent price pressures.
US TREASURY YIELDS AND US DOLLAR INDEX
US Treasury yields have gradually declined to 4.28% from a three-month high of 4.35%, with a hawkish Fed guidance potentially leading to increased yields on Treasury bonds. The US Dollar Index (DXY) continues its winning streak, reflecting doubts over the Fed’s previous rate-cut projections for the year amid stubborn inflation pressures.
TECHNICAL ANALYSIS AND SUPPORT LEVELS
Gold price encountered selling pressure near the crucial resistance level of $2,160, resulting in a decline. Currently trading within Tuesday’s range, gold is poised for potential movement post-Fed policy meeting. Downside momentum may lead gold towards the 20-day Exponential Moving Average (EMA) at $2,097, with potential support levels at the December 4 high near $2,145 and the December 28 high at $2,088.
The 14-Relative Strength Index (RSI) retraces from its peak, indicating active upside momentum despite corrective movements. Stay informed about gold price trends and potential support levels amid evolving market dynamics.
XAUUSD posted an intraday high of $2160.27 and intraday low of $2152.39. Gold is currently trading at $2154.30 (5:28pm Wednesday, 20 March 2024 (GMT+5) Time in Pakistan).
CONSTANT SILVER PRICES
Despite the fluctuations in gold prices, the price of silver remained steady. The per tola and ten gram silver prices remained constant at Rs.2,580 and Rs.2,211.93, respectively.
INTERNATIONAL MARKET TRENDS
In the international market, the price of gold saw a modest increase of $5, rising to $2,178 from $2,173, according to the All Sindh Sarafa Jewellers Association’s report. These fluctuations in gold prices reflect the dynamic nature of the global market.
Stay tuned with the latest developments in gold prices both internationally and domestically to make informed decisions regarding your investments and purchases.
