The price of 24-karat gold in Pakistan declined by Rs. 800 per tola, selling at Rs. 282,300 on Friday, down from Rs. 283,100 the previous trading day, according to the All Sindh Sarafa Jewellers Association. Additionally, 10 grams of 24-karat gold saw a reduction of Rs. 686, priced at Rs. 242,027 compared to Rs. 242,713. Meanwhile, the price of 22-karat gold dropped to Rs. 221,858 per 10 grams, decreasing from Rs. 222,487. Silver prices, however, remained stable at Rs. 3,350 per tola and Rs. 2,872.08 per 10 grams.
In the global market, gold prices fell by $8, reaching $2,726 per ounce from $2,734. The decline is attributed to a combination of factors, including the strength of the US Dollar (USD) and the impact of Federal Reserve policies. Bets on smaller interest rate cuts by the Fed have softened the demand for gold, traditionally a safe-haven asset.
Despite the slight dip in US Treasury bond yields, the strong USD and improved market risk appetite have weighed on gold. Yet, market analysts note that gold could still find support due to upcoming US economic data releases, as well as geopolitical uncertainties, especially in the Middle East.
Technical Analysis: Key Support and Resistance Levels
From a technical perspective, gold is near a potential bearish trend due to a head-and-shoulders pattern on short-term charts. The critical neckline support for gold lies around the $2,705 mark, a level that, if breached, may signal a further decline to around $2,675. A break below $2,700 could extend losses toward $2,660, while resistance levels are observed in the $2,640-2,645 region.
A reversal beyond this resistance could push gold toward the $2,770 level, approaching the trend line set around the $2,800 mark, offering a potential upside for XAU/USD if positive momentum persists.
