Gold price rises by Rs6,600 per tola

ISLAMABAD: Gold price in the country snapped a two-week losing streak and surged by Rs6,600 (2.81 percent) per tola after the prices in the international markets jumped to an all-time high. The gold rate for a single tola of 24-karat increased to Rs234,800 from Rs228,200 during the week, according to the data shared by the different gold associations. Similarly, the price of 10 grams of 24-karat gold closed the week at Rs201,303, while the price for 10 grams of 22-karat gold increased to Rs184,528 during the week under review. During the week, per tola price of the precious metal remained unchanged in the local market on Monday, but increased by Rs1,200 on Tuesday, Rs100 on Wednesday, Rs1,500 on Thursday and Rs3,800 on Friday. Cumulatively, the price of gold rose by Rs6,600 per tola during the week under review. The increase in price in the local market is reliant mostly on international prices which have also risen sharply this week. TLTP
It is important to note that gold rates in Pakistan are influenced by trends in the global market. These fluctuations in gold rates are closely tied to changes in the value of the US dollar, demonstrating the intricate relationship between currency values and gold prices. This connection highlights the impact of global economic factors on the local gold markets.
In global markets, gold closed the week at $2,233 per ounce against $2,164.50 per ounce in the previous week, going up by $68.50 (3.16 percent). Gold ignored the persistent US dollar strength this week and climbed above $2,230. As market focus shifts to next week’s key macroeconomic data releases from the US, the technical outlook suggests that gold could stage a technical correction.
From a technical perspective, the Relative Strength Index (RSI) indicator on the daily chart climbed above 70. Buyers could move to sidelines and wait for a correction before deciding whether the rally has more legs. The 20-day Simple Moving Average (SMA) aligns as first support at $2,160 before $2,135. On the flip side, the round level at $2,300 could be the next resistance in case the precious metal holds above $2,250 and confirms that level as support.