ISLAMABAD
Gold prices lost traction in the local market on Thursday, with the price of one tola of 24-karat gold diving by Rs1,000.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold decreased by Rs1,000 to Rs205,000 from Rs206,000. Similarly, the gold rate for 10 grams of 24-karat decreased to Rs175,754 from Rs176,612 a session earlier, showing a decrease of Rs858. Likewise, 10 grams of 22-karat gold were being traded for Rs173,700 while a single tola of 22-karat gold was being sold at Rs 202,600.
Similarly, in the international market, as of 1400 hours GMT, gold futures were available at $1,909.20 per ounce, showing a decrease of $5.90 (-0.31 percent).
Out of the $5.90 per ounce decrease, +$7.20 was due to weakening of the US dollar and -$13.10 was due to predominant sellers, according to Kitco Gold Index.
Gold came under heavy selling pressure and dropped to a fresh daily low below $1,910. The benchmark 10-year US treasury bond yield climbed to a fresh multi-month high above 4 percent, following strong labour market data from the US, forcing gold prices to stay on the back foot.
Gold price has sensed selling pressure and the precious metal is struggling to attract bets as Federal Reserve policymakers remained hawkish on interest rate outlook, according to Federal Open Market Committee (FOMC) minutes. Despite deepening worries about the economic outlook due to tight credit conditions, Fed policymakers are in support of more restricting monetary policy as inflation is still stubborn due to robust demand.
It is worth mentioning here that gold prices in the local market dipped significantly after the long-pending staff level agreement, worth $3 billion, was finally signed between the International Monetary Fund (IMF) and the government of Pakistan.
