ISLAMABAD
Gold prices increased in the country on Thursday despite international bullion markets remaining cautious ahead of the next round of US debt ceiling negotiations and witnessed over one percent fall to the 45-day low.
The gold rate in the country for a single tola of 24-karat reached Rs233,600 from Rs233,100, showing an increase of Rs500 per tola. Similarly, the price for 10 grams of 24-karat reached Rs200,200 from Rs199,800 a session earlier. Likewise, the gold price for 22-karat was recorded at Rs 185,500 per tola, according to the data shared by Karachi Sarafa Association.
As of 1320 hours GMT, the gold futures in the international market were available at $1,961.80 per ounce, showing a decrease of $20.10. Out of the $20.10 per ounce decrease, -$8.95 was due to strengthening of the US dollar and -$11.15 was due to predominant sellers, according to Kitco Gold Index.
The gold rates in Pakistan exhibited a contrasting movement compared to the international markets, as the gold prices fell globally to a level last seen back on April 3. The rise in gold rates locally can be attributed to the depreciation of the Pakistani rupee against the dollar.
As global markets remain cautious ahead of the next round of debt ceiling negotiations in the United States, the benchmark 10-year US Treasury bond yield held steady at around 3.5 percent, making it difficult for gold to find direction. The gold price is inversely proportional to US treasury bond yields, and rising yields stopped gold prices going forward.
US President Joe Biden and top congressional Republican Kevin McCarthy underscored their determination to strike a deal soon to raise the government’s $31.4 trillion debt ceiling. This helped calm fears of an unprecedented American debt default and boosted investors’ confidence, which further weighed on the safe-haven gold price.
Gold price accelerated to the downside following better-than-expected US economic data. Gold price drifted lower for the third successive day – also marking the sixth day of a negative move in the previous seven.
