The per tola price of 24 karat gold saw a significant increase of Rs. 1,500, reaching a selling price of Rs. 231,000. This surge marks a noteworthy rise compared to its previous sale at Rs. 229,500 on the last trading day. Simultaneously, the price of 10 grams of 24 karat gold also observed a substantial hike, rising by Rs. 1,285 to Rs. 198,045 from Rs. 196,760.

The gold price (XAU/USD) continues its struggle to breach the $2,200 mark on Thursday, exhibiting a narrow trading range during the early part of the European session. Traders exhibit hesitancy as they await further cues regarding the Federal Reserve’s (Fed) rate-cut trajectory before making significant directional moves in the non-yielding yellow metal. Attention remains focused on the upcoming release of the US Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, scheduled for Friday.

LACK OF MOMENTUM

Despite a combination of factors at play, including diverging forces, the gold price fails to gain meaningful momentum, resulting in subdued range-bound price action. Fed Governor Christopher Waller’s hawkish comments on Wednesday, which tempered rate cut expectations, bolstered the US Dollar (USD) to hover near its monthly peak. This USD strength acts as a headwind for XAU/USD. However, the Fed’s indication of maintaining its course towards a 75 basis points rate cut in 2024, coupled with a softer risk sentiment, provides some support to the safe-haven appeal of gold.

TECHNICAL ANALYSIS

From a technical standpoint, the recent range-bound movement observed over the past fortnight could be interpreted as a bullish consolidation phase amidst a robust rally since the month’s onset. Oscillators on the daily chart remain comfortably in positive territory, hinting at potential for an upward breakout. A sustained move above the $2,200 mark would confirm the constructive setup and pave the way for a retest of the record high near the $2,223 region, reached last week.

On the downside, any corrective pullback is likely to find support near the overnight swing low around the $2,173 mark, followed by the $2,164-2,163 zone. Further support lies at the lower end of the short-term trading range, approximately between $2,146-2,145. A breach of this level could trigger aggressive technical selling, potentially accelerating the downward momentum towards the $2,128-2,127 support region, before targeting the critical $2,100 round-figure mark. A breakdown below this level would suggest a near-term peak for XAU/USD.

GOLD TECHNICAL ANALYSIS

PAKISTAN’S MARKET

RISE IN 22 KARAT GOLD PRICES

Additionally, the price of 10 grams of 22 karat gold surged to Rs. 181,541 from its previous rate of Rs. 180,363. This increase reflects the overall upward trend observed in the gold market, signaling potential shifts in investor sentiment and market dynamics.

SILVER PRICES REMAIN STEADY

While gold prices experienced an upward trajectory, the price of silver remained constant. The per tola and ten gram silver prices stood firm at Rs. 2,580 and Rs. 2,211.93, respectively. This stability in silver prices amidst fluctuations in the gold market highlights the distinct dynamics of precious metal investments.

INTERNATIONAL GOLD MARKET TRENDS

In tandem with the domestic surge, the international gold market also witnessed notable changes. The price of gold in the global market increased by $14, reaching $2,214 from its previous rate of $2,200. This uptick in international gold prices reflects broader economic trends and geopolitical factors influencing global markets.

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