ISLAMABAD
Gold prices in the local market decreased by Rs900 on Tuesday following a dip in the international prices.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold decreased to Rs221,000 from Rs221,900, showing a decrease of Rs900 per tola. Similarly, the gold price for 10 grams of 24-karat decreased to Rs187,950. The 22-karat gold rate in the country for a single tola decreased to 201,965 while for 10 grams, the price decreased to Rs173,100.
On the other hand, as of 1300 hours GMT, gold futures in the international market were available at $1,924.80 per ounce, showing a decrease of $11.60 (-0.60 percent). Out of the $11.60 per ounce decrease, -$12.65 was due to strengthening of the US dollar and +$1.05 was due to predominant buyers, according to Kitco Gold Index.
Gold price refreshed its intraday low below $1,930 – the weakest level in nearly a month – as concerns over Thursday’s US Consumer Price Index (CPI) data dampened its appeal. The precious metal came under severe pressure amid strength in the US dollar as investors hoped that the United States inflation could turn out persistent due to sustained wage growth and global oil price recovery.
The risk-averse market atmosphere and the renewed US dollar strength dragged gold prices lower. The benchmark 10-year US Treasury bond yield, however, went down more than 2 percent on the day, helping the gold price limit its losses.
Sticky inflationary pressures in the US economy are going to force Federal Reserve policymakers to consider a continuation of its aggressive rate-tightening cycle. The US home-buyers are already facing the burden of higher borrowing costs and further policy tightening would impact the demand for new houses.
