Gold price jumps to Rs217,700 a tola

ISLAMABAD: Gold price in the country surged for the second straight day by Rs1,400 per tola on Friday, following an overnight surge in prices in the international markets. According to the data provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for one tola of 24-karat gold increased to Rs217,700 from Rs216,300. Similarly, the price for 10 grams of 24-karat gold increased to Rs185,643 from Rs185,442, going up by Rs1,201. Similarly, the price for 10 grams of 22-karat gold increased to Rs171,089 from Rs169,989, showing an uptick of Rs1,100. During the month of January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000 amid a drop in international prices and the continuous strengthening of the Pakistani rupee. Earlier, gold price in the country declined by Rs1,400 (-0.65 percent) per tola last week. It was the fourth consecutive week when the prices of the yellow metal decreased in the country. On the other hand, as of 1240 hours GMT, gold futures in the international market were available at $2,055.20 per ounce, showing an uptick of $1. Out of the $1 increase, +$1.40 was due to weakening of the US dollar and -$0.40 was due to predominant buyers, according to the Kitco Gold Index.
The benchmark 10-year US Treasury bond yield held steady slightly below 3.9 percent as investors moved to the sidelines ahead of the January labour market data from the US. Diplomatic efforts to achieve a ceasefire in the Palestinian enclave have accelerated, which, along with a modest bounce in the US Treasury bond yields, acted as a headwind for the safe-haven precious metal.
From a technical perspective, bulls might now wait for some follow-through buying beyond the $2,065 area, or a one-month top touched on Thursday, before placing fresh bets. Given that oscillators on the daily chart have just started gaining positive traction, the gold price could then accelerate the momentum towards the $2,078-2,079 region, or the year-to-date peak set in January. The subsequent move-up should allow the gold price to aim back to reclaim the $2,100 mark.
On the flip side, the $2,042-2,040 strong horizontal resistance break-point seems to protect the immediate downside ahead of the 50-day Simple Moving Average (SMA), currently pegged near the $2,033-2,032 zone. A convincing break below the latter could drag the gold price to the $2,012-2,010 area en route to the $2,000 psychological mark.