ISLAMABAD: Gold prices in the local market decreased for the sixth straight session by another Rs3,100 a tola on Monday, following persistent appreciation of Pakistani rupee against the US dollar as well as consolidation of price 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 Rs209,400 from Rs212,500, showing a decrease of Rs3,100. During the last six days, gold price has fallen by Rs30,400 a tola in the country. Similarly, the gold price for 10 grams of 24-karat dipped to Rs179,527 from Rs182,184, depicting a decrease of Rs2,657. Following suit, the 22-karat gold rates for 10 grams went down to Rs164,566 from Rs167,002 with a decrease of Rs2,436. Market analysts attributed the big decrease in gold prices to the ongoing depreciation in the international prices as well as appreciation of Pakistani rupee against the US dollar in the open market. Overall, the rupee has appreciated by Rs29 in the last four sessions. Since gold is denominated in the US dollars when the local unit appreciates against the greenback, the value of gold in the local market falls. On the other hand, as of 1225 hours GMT, gold futures in the international market were available at $1,925.90 per ounce, showing an increase of $7.20 (+0.38 percent). TLTP
Out of the $7.20 increase, +$6.60 was due to weakening of the US dollar and +$0.60 was due to predominant buyers, according to the Kitco Gold Index.
Gold prices struggled to find a direction as investors awaited the US Consumer Price Index (CPI) data for August. The precious metal remained sideways despite the US dollar delivering a corrective move, while investors digested global slowdown fears.
Gold price benefited from a broad-based US dollar decline, rebounding from near one-week lows of $1,915. The further upside in gold price, however, appeared elusive amid an upswing in the US Treasury bond yields. Additionally, China’s slowing CPI and deflation in the factory gate inflation could also put gold buyers on a cautious footing. China’s CPI rose 0.1 percent in August from a year earlier, reversing course slightly from a fall of 0.3 percent in July, according to data published on Saturday by the National Bureau of Statistics (NBS).
