Gold price has dropped around two-and-a-half percent in the international market as Nonfarm Payrolls in the US rose more than expected in July.
At the end of market timings on Friday, gold in the international market was available at $1,763.90 per ounce after shedding $41.20 as compared to its closing value on Thursday last.
As the market in Pakistan is closed earlier as compared to the international market due to time difference, the price of 10 grams of yellow metal in Pakistan decreased to Rs93,000 after shedding Rs2,500.
The closing prices of the yellow metal in the country remained Rs95,500 on Thursday last. According to experts, additional losses are likely with a daily close below 100-day SMA.
With this recent decline, the Relative Strength Index (RSI) indicator on the daily chart dropped below 40 but continues to stay above 30, suggesting that there is more room on the downside before gold becomes technically oversold.
Furthermore, the gold prices remain on track to close below the 100-day SMA for the first time since mid-June.—TLTP