March 10, 2024 (MLN): Local prices of 24-karat gold are set to surpass their all-time high of Rs240,000 per tola as international spot gold enters price discovery mode.
Spot gold climbed past its previous record after a two-month correction, bouncing back from the key support level mentioned earlier.
The initial target remains $2,300 based on Fibonacci extensions.
This would translate to domestic prices of about Rs243,000 per tola, barring any significant PKR movements.
Globally, the yellow metal has climbed 5.6% this year, fueled by hopes for rate cuts. That is on top of a 13.2% surge in 2023.
The US Federal Reserve is widely expected to shift its gears to monetary easing, after what has been the most aggressive fight against soaring inflation. This is expected to boost gold’s appeal in comparison to yield-bearing assets like bonds.
CME FedWatch Tool shows a 73.35% chance of a Federal Reserve interest-rate cut in June.
Moreover, central banks around the world continue to add gold to their holdings.
Since October 2022, China alone has increased its gold reserves by a staggering 15%, equivalent to 9.6 million troy ounces or a staggering $20.8 billion at current market prices.
To note, domestic gold prices are primarily driven by international gold prices and the PKR exchange rate.
| Support Levels | ||
|---|---|---|
| $2,150 | $2,132 | $2,098 |
| S1 | S2 | S3 |
| Resistance Levels | ||
|---|---|---|
| $2,300 | – | – |
| R1 | R2 | R3 |
Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only. It is not intended to be financial or investment advice and should not be the basis for making financial decisions.
Copyright Mettis Link News
Posted on:2024-03-10T16:51:17+05:00
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