ISLAMABAD: Gold prices in the local market increased by Rs900 a tola on Tuesday due to a surge in international bullion prices. According to different jeweller associations, the price of one tola of 24-karat gold decreased to Rs201,000 from Rs200,100. Similarly, the gold price for 10 grams of 24-karat gold increased to Rs172,320 fromRs171,553. Following suit, the price for 10 grams of 22-karat gold increased to RsRs158,000. 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. TLTP
On the other hand, as of 1300 hours GMT, gold futures in the international market were available at $1,925.90 per ounce, showing an increase of $6.20. Out of the $6.20 increase, -$4.70 was due to strengthening of the US dollar and +$10.90 was due to predominant buyers, according to the Kitco Gold Index.
After rising toward $1,930 earlier in the day, gold lost its bullish momentum and declined toward $1,920. Following the better-than-forecast retail sales data from the US, the benchmark 10-year US Treasury bond yield climbed above 4.8 percent and weighed on gold price.
Gold price trades directionless ahead of US President Joe Biden’s visit to Israel amid deepening Middle-East tensions and the speech from Federal Reserve (Fed) Chair Jerome Powell, which is expected to provide significant guidance on interest rates. Investors hope that Powell will favor a neutral monetary policy and join other Fed officials who recently said higher bond yields are sufficient to tame inflation.
