ISLAMABAD
Gold prices in the country decreased by Rs1,700 per tola on Tuesday, as gold continued its losing streak for the second consecutive day despite an upward trend in the international market.
According to the All-Pakistan Sarafa Gems and Jewellers Association’s (APSGJA) data, the price of one tola of 24-karat gold fell to Rs232,800 from Rs234,500.
Similarly, the gold rate for 10 grams of 24-karat reached Rs199,600 from Rs201,050, showing a decrease of Rs1,450. The gold price for 22-karat was recorded at Rs212,550 against Rs214,000 per tola a session ag0. Likewise, the gold rate for 10 grams of 22-karat decreased to Rs183,000 from Rs184,300.
As of 1410 hours GMT, the gold futures in the international market were available at $1,955.20 per ounce, showing an increase of $12.20 (0.63 percent). Out of the $12.20 per ounce increase, +$3.95 was due to weakening of the US dollar and +$8.25 was due to predominant buyers, according to Kitco Gold Index.
Gold prices climbed after the benchmark 10-year US Treasury bond yield went down more than one percent. The US dollar is losing ground in anticipation of a positive response to the US debt deal optimism. The US government bonds and stock futures are clearly reflecting the market’s expectations that Congress will pass the debt deal on Wednesday to avert a default. With the worries over a US debt deal now out of the way, attention turns toward the economic data releases from the United States.
The domestic gold market has remained volatile for the last one year due to economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge to protect themselves against inflation and currency depreciation.
