ISLAMABAD
Gold prices in the local market edged down by Rs200 a tola on Thursday following rupee’s appreciation against the US dollar.
According to Karachi Sarafa Association, the price of one tola of 24-karat gold decreased to Rs206,300 from Rs206,500. Similarly, the gold price for 10 grams of 24-karat gold decreased to Rs176,869 from Rs177,040, showing a decline of Rs171. Following suit, the price for 10 grams of 22-karat gold decreased to Rs162,130 from Rs162,287, showing an increase of Rs157 as compared to the last session.
All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) Haji Haroon Rasheed Chand said that disparity still exists in the domestic bullion, with different rates being quoted at Peshawar and Lahore and there lacks a uniform rate, according to a media report. However, an agreement has been reached with all the provinces that a premium of $20 will be charged on the international gold price, and the interbank rate will be used for calculations of domestic gold.
Pakistani rupee snapped a two-day losing streak against the US dollar in the inter-bank market with a gain of Rs1.48. Similarly, the Pakistani rupee recovered Re1 against the greenback in the open market.
It is important to mention that in a bid to enhance transparency within the gold market, the State Bank of Pakistan has now authorised all gold dealers to calculate domestic bullion rates using the interbank exchange rate. Moreover, the Federal Ministry of Industries and Production has established a 15-member advisory council that will review existing policies related to the gold trade, standards, certification, and value addition.
On the other hand, as of 1315 hours GMT, gold futures in the international market were available at $1,952.60 per ounce, showing an increase of $5.70. Out of the $5.70 increase, +$4.60 was due to weakening of the US dollar and +$1.10 was due to predominant buyers, according to the Kitco Gold Index.
Gold price gained strong positive traction a session earlier on Wednesday and shot to its highest level since early August above $1,960 in the wake of the risk of an escalation in the Middle East conflict. Early Thursday, the gold price consolidated its gains near $1,950.
That said, a further rise in the US Treasury bond yields, bolstered by expectations that the Federal Reserve will keep rates higher for longer, capped gains for the non-yielding yellow metal. Apart from this, a pickup in the US dollar demand prompted some profit-taking at higher levels and led to a modest pullback.
