Gold loses Rs1,200 more to reach Rs241,100 per tola

ISLAMABAD, ( ind report): Gold price in the country decreased by Rs1,200 per tola on Tuesday in line with an overnight 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 Rs241,100 from Rs242,300. Similarly, the price for 10 grams of 24-karat gold decreased to Rs206,790 from Rs207,733, showing a dip of Rs943.

It is worth noting that the price has been kept Rs3,000 below its actual cost, the Karachi Sarafa Association reported, saying: “In view of the significant reduction in purchasing power, the price of gold today has been kept under cost by Rs3,000.”

The gold price decreased by Rs1,200 per tola on Monday last, while the price increased by Rs5,500 per tola 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 1350 hours GMT were available at $2,349.40 per ounce, showing an uptick of $13.70. Out of the $13.70 increase, +$3.55 was due to weakening of the US dollar and +$10.15 was due to predominant buyers, according to the Kitco Gold Index.

Following Monday’s decline, gold staged a rebound towards $2,350. The benchmark 10-year US Treasury bond yield stayed in negative territory below 4.5 percent after April producer inflation data, allowing the gold price to hold its ground. The upside of yellow metal might be limited as traders might wait on the sidelines ahead of key US inflation data this week.

From a technical perspective, the yellow metal kept the bullish vibe unchanged as the price remained above the key 100-day Exponential Moving Average (EMA). The upward momentum is reinforced by the 14-day Relative Strength Index (RSI), which is in the bullish zone at 52.70, indicating the support level is likely to hold rather than break.

A high of May 10 at $2,378 acts as an immediate resistance level for the precious metal. Extended gains will pave the way to the $2,400 psychological level. On the flip side, the crucial support level will emerge around the $2,325–$2,340 zone. The breach of this level will expose a low of May 2 at $2,281.

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