ISLAMABAD: Gold prices lost traction on Tuesday, with the price of one tola of 24-karat gold came down by Rs1,100 in the country. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold decreased by Rs1,100 to Rs214,200 from Rs215,300. Similarly, the gold rate for 10 grams of 24-karat moved down to Rs183,642 with a decrease of Rs943 per 10 grams from Rs184,585. TLTP
Gold prices dropped in the domestic market on Tuesday in line with the downward trend in the international market.
In the international market, as of 1415 hours GMT, gold futures were available at $1,913.80 per ounce, showing a decrease of $9 (-0.47 percent). Out of the $9 per ounce increase, +$4.45 was due to weakening of the US dollar and -$13.45 was due to predominant sellers, according to Kitco Gold Index.
Gold prices edged lower due to the US dollar’s weakness. The benchmark 10-year US Treasury note yield, at the time of writing, was fetching 3.735 percent, still high for non-yielding gold.
The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. The people prefer to buy this precious commodity in such times as a safe investment and a hedge. It is to note that the price of the bullion is Rs4,000 per tola “under-cost” in Pakistan as compared to the Dubai market, showing that the Pakistani gold market is currently cheaper as compared to the global bullion markets.
