ISLAMABAD
Gold prices in the local market moved slightly down on Tuesday, following a dip in international bullion prices after a massive jump in the previous session.
The price of one tola of 24-karat gold decreased to Rs199,800 from Rs200,000. Similarly, the gold price for 10 grams of 24-karat decreased to Rs171,300 from Rs171,470.
It is to be noted that local bullion pricing bodies, Karachi Sarafa Market and All Pakistan Gems and Jewelers Association, have refrained from announcing daily commodity prices since September 13 and the prices quoted above are being collected from different local markets.
On the other hand, as of 1300 hours GMT, gold futures in the international market were available at $1,854.30 per ounce, showing a decrease of $6.60. Out of the $6.60 decrease, +$1.75 was due to weakening of the US dollar and -$8.35 was due to predominant sellers, according to the Kitco Gold Index.
Gold price staged a technical correction and fell towards $1,850 following Monday’s impressive upsurge. The benchmark 10-year US Treasury bond yield was seen rising more than 1 percent on the day at 4.7 percent, not allowing gold price to gather bullish momentum.
The safe-haven precious metal, which tends to benefit from political and economic turmoil, further benefits from the ongoing retracement slide in the US Treasury bond yields, led by reduced bets for further rate hikes by the Federal Reserve.
This, along with subdued US dollar price action, pushes the non-yielding yellow metal higher for the third successive day on Tuesday, to over a one-week high.
Gold price has now recovered over $50 from a seven-month low touched on Friday last, though it seems to struggle to capitalize on the momentum. The overnight dovish remarks by Fed officials boosted investors’ confidence, which was evident from a generally positive tone around the equity markets and capped gains for the safe-haven gold. Investors also seem reluctant and prefer to wait on the sidelines ahead of this week’s key releases from the United States – the FOMC meeting minutes on Wednesday and the consumer inflation figures on Thursday.
