Gold prices inched down in the country, toeing the international market, and decreased by Rs100 to close at Rs237,200 per tola on Tuesday.
Similarly, the gold rate for 10 grams of 24-karat reached Rs203,365 from Rs203,450, showing a decrease of Rs85, according to the All-Pakistan Sarafa Gems and Jewellers Association’s (APSGJA) data. The gold price for 22-karat was recorded at Rs217,370 against Rs217,450 per tola a session ag0. Likewise, the gold rate for 10 grams of 22-karat dived down to Rs186,400.
As of 1355 hours GMT, the gold futures in the international market were available at $1,968.10 per ounce, showing a decrease of $3.70.
Out of the $3.70 per ounce decrease, -$5.15 was due to strengthening of the US dollar and +$1.45 was due to predominant buyers, according to Kitco Gold Index.
The benchmark 10-year US treasury bond yield extended the rally into an eighth straight day and held comfortably above 3.7 percent. The prices were pressured by a strong dollar, which did not allow gold to stage a rebound. Gold price dropped back closer to its lowest level since early April in the international market.
The gold rates in Pakistan are at record high levels compared to the international markets due to poor economic conditions and depreciating rupee against major global currencies. The domestic gold market has remained volatile for the last one year due to economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge to protect themselves against inflation and currency depreciation.