ISLAMABAD
Gold prices in the local market increased for the third day in a row despite rupee’s appreciation against the US dollar and a dip 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 Rs219,000 from Rs216,500, showing an increase of Rs2,500. Similarly, the gold price for 10 grams of 24-karat surged to Rs 187,760 from Rs 185,820, depicting an increase of Rs1,920.
Likewise, 10 grams of 22-karat gold were being traded for Rs165,824 while a single tola of 22-karat gold was being sold at Rs193,415. During the last eight days, gold price fell by Rs20,600 a tola in the country.
On the other hand, as of 1350 hours GMT, gold futures in the international market were available at $1,905 per ounce, showing a decrease of $2.90 (-0.15 percent). Out of the $2.90 decrease, -$6.35 was due to strengthening of the US dollar and +$3.45 was due to predominant buyers, according to the Kitco Gold Index.
Gold price remained subdued on Thursday as a stickier US inflation report for August confused investors about further direction. The precious metal strived for a decisive move as the market hoped that the impact of higher headline inflation due to rising gasoline prices remained limited to the headline Consumer Price Index (CPI).
The US dollar demonstrated a volatility compression after a slightly hot inflation report failed to prompt hawkish Federal Reserve bets.
After the US inflation report, investors shifted their focus to the Producer Price Index (PPI) and consumer spending data for August, which will solve the interest rate puzzle further. The current restrictive interest rate cycle has failed in denting labour demand and consumer spending significantly, but the market remains worried that a “higher for longer” rate context could dampen the broader picture ahead.
