ISLAMABAD
Gold prices in the local market increased by Rs600 per tola on Thursday following a rise in prices in the international markets.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs222,800 from Rs222,200. Similarly, the gold price for 10 grams of 24-karat increased to Rs191,015, rising by Rs514.
Gold rates in the local market experienced an uptick due to depreciation of the rupee against the US dollar and an increase in international gold prices. It is essential to recognise that the exchange rate and international market prices play a direct and influential role in shaping the prices of precious metals like gold within Pakistan.
On the other hand, as of 1415 hours GMT, gold futures in the international market were available at $1,921.10 per ounce, showing an increase of $7.70 (+0.40 percent). Out of the $7.70 per ounce increase, +$6.95 was due to weakening of the US dollar and +$0.75 was due to predominant sellers, according to Kitco Gold Index.
Gold price stayed in positive territory above $1,920 after the benchmark 10-year US Treasury bond yield stayed in the red slightly below 4 percent, following the July inflation data, which showed an annual increase of 4.7 percent in Core CPI, and helped gold price hold its ground.
The precious metal remains on tenterhooks as forward action will be guided by the pace of inflation in the July US Consumer Price Index (CPI) data on inflation. Gold price doesn’t find meaningful support despite a decline in the US dollar. It seems that the impact of falling demand from central banks is intact.
The US consumers paid prices that were 3.2 percent higher in July than a year earlier. That’s a touch milder than economists expected and down sharply from last summer’s peak above 9 percent. The readings bolstered hopes that the Federal Reserve’s campaign to grind down inflation is making progress.
