According to Bank of America's July survey, fund managers now see gold as the most undervalued asset since March 2023, with a net 6% of 181 institutional managers calling gold undervalued. This represents a dramatic shift from earlier periods when the same survey showed extreme overvaluation readings, with net 40% or more of managers calling gold overvalued near the January peak through 2025 and early 2026. The sentiment reset comes after gold traded about 26% below its record high, pushing the metal into bear market territory earlier this month. As reported by Barchart, this marks the first negative overvaluation reading in more than three years, with the last similar setup preceding a rally that nearly tripled the price in March 2023.
According to the latest market data, 18K gold is currently priced at $96.72 per gram in the United States, showing a slight increase of $0.11 USD (0.12%) over the past 7 days. The current spot price is below the weekly average of $96.99 USD, with the price fluctuating within a range of $95.89 to $98.01 USD during this period. However, international gold markets present a more complex picture, with Pakistan's gold prices having more than quadrupled over the last five years, rising from approximately ₹100,000 per tola in 2021 to above ₹500,000 today. This dramatic increase demonstrates how local currency depreciation can significantly impact domestic gold prices, even when international rates remain relatively stable.
Latest technical analysis reveals a Strong Sell outlook for XAU/USD with moving averages ranging from MA5 to MA200 showing 0 Buy signals and 12 Sell signals. The Relative Strength Index (RSI) of 49.712 over the 14-day period suggests the pair is Neutral, while the MACD at 5.400 indicates a potential Buy signal. The 5-day moving average of 4020.09 and 50-day moving average of 4002.03 both suggest a Sell position, with the Fibonacci pivot point performance value at 4028.53 providing key support and resistance levels. The technical indicators collectively point to a Strong Sell daily buy/sell signal for gold against the US dollar, reflecting current market sentiment and technical momentum. Recent developments show gold gained 1.74% on Wednesday to $4,148, its highest close since July 7, after defending the $3,900-$4,000 support zone.
Pakistan's gold rates are calculated using a different methodology compared to India, with the Sarafa Jewellers Association converting international prices to rupees and calculating per-tola rates. As reported by Oraan Gold, 1 tola equals 11.6638 grams in Pakistan, and the association publishes official daily rates based on the international gold price (USD per troy ounce) converted at the current USD/PKR exchange rate. Even when international gold prices remain flat, rupee depreciation alone can push domestic rates higher, demonstrating how currency fluctuations significantly impact local gold markets. The pricing structure varies by karat, with 24K gold being 99.9% pure, 22K at 91.6% purity, and 21K at 87.5% purity, each serving different purposes in the Pakistani market.
The latest developments show growing accessibility in gold investment, with platforms like Oraan Gold offering monthly installment plans starting from 1 gram, allowing customers to purchase gold in smaller quantities without lump sum requirements. These services provide Shariah-compliant, zero-interest financing with insured doorstep delivery, addressing the traditional barriers to gold investment. The platform serves over 600,000 Pakistanis and offers five size options from 1 gram to 5 tola, enabling broader participation in gold investment while maintaining the cultural significance of gold as a wealth-building tool across generations in Pakistan.
