Gold price falls by Rs1,200 to Rs242,300 per tola
ISLAMABAD: Gold price in the country decreased by Rs1,200 per tola on Monday in line with a dip in the price of the yellow metal in the international market. According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs242,300 from Rs243,500. Similarly, the price for 10 grams of 24-karat gold decreased to Rs207,733 from Rs208,676, showing a dip of Rs943. The local rate was set at $2,349 per ounce (with a premium of $20) after a decrease of $10 during the day. Gold price per tola increased by Rs5,500 in Pakistan last week. However, the gold price in the country surged by Rs7,100 per tola in April. It may be noted that the gold price hit an all-time high in Pakistan on April 20 when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time highs of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9. On the other hand, gold futures in the international market as of 1340 hours GMT were available at $2,343.30 per ounce, showing a dip of $16.40. Out of the $16.40 decrease, +$4.90 was due to weakening of the US dollar and -$21.30 was due to predominant sellers, according to the Kitco Gold Index. Gold staged a downward correction and traded in the red below $2,350. Nevertheless, the benchmark 10-year US Treasury bond yield edged lower below 4.5 percent and allowed the gold price to limit its losses. The growing speculation that the Federal Reserve (Fed) might delay its easing plans boosted the greenback and dragged the USD-denominated gold lower. However, signs of economic weakness and ongoing geopolitical tensions in the Middle East are likely to support precious metals in the near term. From a technical perspective, the bullish stance of the yellow metal remains intact as it holds above the key 100-day Exponential Moving Average (EMA). The upward momentum is supported by the 14-day Relative Strength Index (RSI) which stands in bullish territory around 63.50, suggesting the further upside looks favorable.
