ISLAMABAD
Gold prices in the country decreased by Rs1,000 per tola on Monday, maintaining its downward slide locally for the third consecutive session.
According to the All-Pakistan Gems and Jewellers Association’s (APSGJA) data, the price of one tola of 24-karat gold decreased to Rs230,400 from Rs231,400. Similarly, the gold rate for 10 grams of 24-karat moved down to Rs197,550 from Rs198,400 with a decrease of Rs850.
The value of gold fluctuated throughout the last week in domestic markets and fell by Rs1,600 on Saturday last. Cumulatively, the price of gold decreased by Rs2,600 in the last two sessions. The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, high inflation, and currency depreciation. People prefer to buy yellow metal in such times as a safe investment and a hedge.
As of 1430 hours GMT, the gold futures in the international market were available at $1,955.80 per ounce, showing an increase of $8.30 (+0.43 percent). Out of the $8.30 per ounce increase, +$0.2 was due to weakening of the US dollar and +$8.10 was due to predominant buyers, according to Kitco Gold Index.
The gold price gathered bullish momentum after the dismal ISM Services PMI data for May, the 10-year US Treasury bond yield fell sharply and turned negative on the day below 3.7 percent, fuelling gold’s rebound.
The US Dollar Index (DXY) is continuously trading sideways around 104.00 after a stellar rally. It seems that the USD Index is gathering strength for further upside. Higher odds of one more interest rate hike from the Federal Reserve (Fed) have also fueled fresh blood into US Treasury yields. The yields offered on 10-year US Treasury bonds have climbed strongly above 3.74 percent.
