Gold hits fresh high of Rs251,900 per tola

Gold price in the country took another giant leap and hit a fresh high on Wednesday with an increase of Rs2,200 per tola amid a consistent surge 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 increased to Rs251,900 from Rs249,700. Similarly, the price for 10 grams of 24-karat gold increased to Rs215,964 from Rs214,077, showing an increase of Rs1,887. Following suit, the price for 10 grams of 22-karat gold increased to Rs197,967 from Rs196,238, going up by Rs1,729.
Earlier on Tuesday, gold price per tola increased by Rs2,400. It may be noted that earlier gold price per tola in Pakistan hit all-time high of Rs247,300 on April 16 and Rs247,600 on April 9 amid record increase in the international rate.
On the other hand, gold futures in the international market as of 1335 hours GMT, were available at $2,392 per ounce, showing an uptick of $9.80. Out of the $9.80 decrease, $4.50 was due to weakening of the US dollar and $5.30 was due to predominant buyers, according to the Kitco Gold Index.
Deepening Middle East tensions hold strong ground for gold. Israel prepares to respond to Iran’s attack. However, US President Joe Biden said it won’t support the counterattack from Israel. On the other hand, the prospects for the Federal Reserve keeping interest rates higher for longer bodes well for the US dollar and US bond yields. The 10-year US Treasury yields fell slightly but remained close to a five-month high around 4.70 percent. US Treasury Secretary Janet Yellen said on Tuesday that the US administration intends to levy new sanctions on Iran after its attack on Israel. Fresh sanctions on Iran could impact their capacity to export oil.
From a technical perspective, gold prices traded sideways. The upside in the precious metal remained limited as momentum oscillators were cooling down after turning extremely overbought. The 14-period Relative Strength Index (RSI) on the daily chart dropped slightly after peaking around 85; however, the broader-term demand remained intact as the RSI remained in the bullish range of 60.00-80.00. On the downside, April 5 low near $2,268 and March 21 high at $2,223 will be major support areas.