The price of 24-karat gold per tola surged by Rs. 2,000, reaching an all-time high of Rs. 285,400 on Wednesday, compared to Rs. 283,400 on the previous trading day, according to the All Sindh Sarafa Jewellers Association.
Similarly, the price of 10 grams of 24-karat gold increased by Rs. 1,714, rising to Rs. 244,684 from Rs. 242,970. The price of 10 grams of 22-karat gold also saw an uptick, increasing to Rs. 224,294 from Rs. 222,722.
In addition to gold, silver prices also experienced an increase. The price of silver per tola went up by Rs. 200, reaching Rs. 3,350, while the price of 10 grams of silver increased by Rs. 171.46, now standing at Rs. 2,872.08.
On the international market, the price of gold saw a rise of $20, increasing to $2,757 from the previous $2,737.
Gold (XAU/USD) has continued its upward trend, reaching new all-time highs as it enters the $2,750 range on Wednesday. This rally is primarily driven by increased investor demand for safe-haven assets amid ongoing conflict in the Middle East and heightened election uncertainty in the United States. Former President Donald Trump and Vice President Kamala Harris are closely matched in opinion polls, with the prospect of a Trump victory viewed as a potential threat to geopolitical stability.
The upcoming BRICS summit also contributes to the rally, as member nations, particularly Russia, explore alternatives to the US Dollar (USD), including the idea of a gold-backed currency.
However, gains for gold are somewhat constrained by a global bond market rout, as investors anticipate a slower decline in interest rates than previously expected. The US Federal Reserve’s more cautious approach to interest rate cuts has diminished gold’s appeal as a non-yielding asset.
The ongoing conflict in the Middle East, particularly between Israel, Hamas, and Hezbollah, continues to drive investors toward gold. Recent developments, such as the death of Hamas leader Yahya Sinwar and US Secretary of State Antony Blinken’s struggles to negotiate a ceasefire, underscore the precarious situation. Reports of Israeli military actions in Lebanon and preparations for potential retaliatory strikes on Iran add further tension to the region.
Technical Analysis: Gold’s upward momentum remains strong, breaking above the $2,750 psychological barrier. While the Relative Strength Index (RSI) indicates that gold is overbought, suggesting caution for long-holders, any pullback may be short-lived, allowing for the continuation of the broader bullish trend. Key support levels are identified at $2,750, $2,700, and $2,685 (the September high). The next target for gold could be $3,000 if the upward trend persists.
