Gold prices in Pakistan surged on Tuesday, with 24-karat gold being sold at Rs285,000 per tola, reflecting an increase of Rs1,600 from the previous session. The Karachi Sarafa Association also reported a rise in the 10-gram price of 24-karat gold to Rs244,342, an increase of Rs1,372. Additionally, the price for 22-karat gold climbed to Rs223,980 per 10 grams. Meanwhile, domestic silver prices remained steady, with 24-karat silver priced at Rs3,350 per tola and Rs2,872 per 10 grams.
Global Gold Market Dynamics
Globally, spot gold traded around $2,752 per ounce, up by $7.9 or 0.29%, as the metal maintained strong demand amid economic uncertainties. Investors continue to favor gold as a safe-haven asset due to ongoing geopolitical concerns, particularly the Middle East tensions and anxieties surrounding the upcoming US presidential election. Vice President Kamala Harris and the Republican candidate Donald Trump are in a close race, further amplifying market volatility and investor interest in gold as a hedge.
Factors Influencing Gold Prices
Gold prices received support from the pullback in US Treasury yields, even as upbeat US economic data suggested a resilient economy. Strong macroeconomic indicators have led analysts to anticipate smaller interest rate cuts by the Federal Reserve, which keeps US Treasury yields elevated. This has slightly dampened some of the recent bullish sentiment around gold, as higher interest rates generally make gold less appealing compared to yield-bearing assets.
Technical Outlook: Gold’s Momentum
From a technical perspective, gold has been flirting with the upper bounds of its recent trading range, approaching the $2,750 level. Breaking through this supply zone could push gold towards its all-time high of $2,759 and potentially higher. However, traders are cautious, as the Relative Strength Index (RSI) suggests gold may be entering overbought territory, which could trigger a modest pullback. Any decline may find support near the $2,725 level, while a break below the $2,715 range could initiate further selling pressure, potentially leading prices down to the $2,675 mark.
Outlook
Investors are keeping a close eye on the US economic reports, including the Conference Board’s Consumer Confidence Index and the Job Openings and Labor Turnover Survey (JOLTS). The results of these reports will likely provide fresh insights into the Federal Reserve’s interest rate plans, which could impact both the US dollar and gold price movements.
In Pakistan, gold remains sensitive to global price movements and shifts in investor sentiment. As global economic and geopolitical factors continue to evolve, particularly with US elections and tensions in the Middle East, gold prices are expected to remain volatile in the short term.
