(CTN News) – The price of gold reached a three-week low at Rs215,600 per tola (11.66 grams) on Saturday, following the global trend where profit-taking could potentially push the metal further down early next week.
The All Pakistan Saraf Gems and Association has revised the price by 1.37%, or Rs 3,000. In the international market, it has dropped by 1.22%, or $26, to $2,024 per ounce (31.10 grams).
According to AA Gold Commodity Director Adnan Agar, gold is currently retreating after reaching a new all-time high of $2,130 per ounce on Monday, as projected earlier.
Agar highlighted that the outstanding US jobs data has fueled profit-taking, as high interest rates have not had a significant impact on the global economy.
He also mentioned that the US central bank may maintain the rate at elevated levels until June, contrary to earlier expectations of a reduction in the rate from March 2024 onwards.
In the US, more jobs than projected, totaling 150,000, were created in November, while the unemployment rate dropped to 2.7% against expectations of a 3.9% reading.
Agar stated that the precious metal closed at $2,003 per ounce in the international market on Friday, and he hopes that the ongoing profit-taking will potentially bring the price down to $1,950-1,960 per ounce by Wednesday next week.
The announcement of the US inflation data on Wednesday will have a significant impact on the short-term direction of gold. If the price does not drop below $2,000 by Wednesday, it is likely to experience a correction afterward, which will also affect the gold price in Pakistan.
On the other hand, there is a possibility that the price of gold may rise to $2,030-2,040 per ounce next week. According to Agar, there is a chance that may test $1,800 in December 2023 and January 2024, as a correction is overdue since it rose to $1,870 during the Israel-Palestine war.
It is important for global investors to closely monitor the US economic data before making any major investment decisions.
If there are any interest rate cuts between March and June 2024, it may encourage investors to shift their investments to international equity markets.
Additionally, the exchange rate between the rupee and the dollar in Pakistan’s inter-bank market could influence the local gold prices. The rupee-dollar parity plays a crucial role in determining the price of gold in the local markets.