Thursday brought a wave of positivity for gold traders and investors in Pakistan as the price of 24-karat gold saw a notable increase of Rs800 per tola, reaching a new level of Rs216,300. This uplift is a significant development, considering the earlier downtrend we saw in January 2024.

LATEST UPDATES FROM THE KARACHI SARAFA ASSOCIATION

According to the Karachi Sarafa Association, the price for 10-gram 24-karat gold rose by Rs686, settling at Rs185,442. Additionally, the 10-gram 22-karat gold also saw an increase, reaching Rs169,989.

STEADY SILVER PRICES

However, silver prices maintained their ground, with 24-karat silver priced at Rs2,600 per tola and Rs2,229.08 per 10-gram, pointing stability in this segment of the domestic bullion market.

REFLECTING ON THE JANUARY 2024 GOLD PRICE DYNAMICS

A ROCKY START TO 2024

The beginning of 2024 was less than auspicious for gold traders in Pakistan, as the price of 24-karat gold dipped by Rs4,500 per tola to Rs215,500. This decline was largely attributed to falling international gold (XAUUSD) prices and the strengthening of the Pakistani rupee (PKR) against the dollar.

INTERNATIONAL MARKET INFLUENCES

The international gold market also experienced its share of fluctuations, with a 1.15% drop in January, fueled by anticipations of a rate cut by the U.S. Federal Reserve. Nevertheless, growing tensions in the Middle East and waning expectations for a rate cut have renewed interest in gold as a safe-haven asset, hinting at a potential bullish trend provided it conquers its resistance technically.

CURRENT INTERNATIONAL GOLD RATES (XAUUSD)

As of the latest update, the international spot price for gold stands at $2,040.338, marking a slight increase of 0.03% compared to the previous session’s closing. This slight uptick reflects the complex interplay of global economic signals and geopolitical concerns related to the ongoing middle east crisis.

XAUUSD_2024-02-01_15-05-45
XAUUSD_2024-02-01_15-05-45

TECHNICAL ANALYSIS OF GOLD(XAUUSD)

The technical analysis of the gold price suggests a positive outlook as it remains within the trading range set on Wednesday. The market’s attention is now turning towards the upcoming US ISM Manufacturing PMI and Employment data.

From a technical standing, gold’s prospects look promising following a breakout from a Symmetrical Triangle pattern on the daily chart. The 20-day Exponential Moving Average (EMA), positioned at $2,032.50, provides support for the gold price. Additionally, the 14-period Relative Strength Index (RSI) is nearing the 60.00 level, indicating that surpassing this threshold could activate further bullish momentum.

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