ISLAMABAD
Gold prices in the local market turned around by Rs5,500 a tola increase on Wednesday, following a surge in international bullion prices.
According to Karachi Sarafa Association, the price of one tola of 24-karat gold increased to Rs205,000 from Rs199,500. Similarly, the gold price for 10 grams of 24-karat increased to Rs175,754, with an uptick of Rs4,715. Similarly, the gold price for 10 grams of 22-karat jumped to Rs161,108 with an increase of Rs4,322.
The rate of the 24-karat gold in Karachi is around Rs1,000 per tola less compared to Lahore, Peshawar, and Quetta, where the metal closed at Rs206,000.
It is to be noted that local bullion pricing body, Karachi Sarafa Market, reopened for the first time after September 13, following a crackdown on gold dealers, which caused panic in the bullion 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 $1,871.30 per ounce, showing an increase of $11.30. Out of the $11.30 increase, +$0.20 was due to weakening of the US dollar and +$11.10 was due to predominant buyers, according to the Kitco Gold Index.
Gold stayed in positive territory and consolidated its gains near $1,870 following the rally seen in the European session. The benchmark 10-year US Treasury bond yield went down more than 1 percent on the day below 4.6 percent, ahead of FOMC Minutes, supporting the yellow metal prices.
Gold price seesawed between tepid gains/minor losses on Tuesday and consolidated its strong recovery gains from the $1,810 area, or a seven-month low touched last week. The precious metal, however, managed to hold above the $1,850 level and extended its sideways price move heading into the European session on Wednesday.
