ISLAMABAD
Gold prices in the local market decreased by Rs1,100 per tola on Monday, following rupee’s appreciation against the US dollar.
The price of one tola of 24-karat gold decreased to Rs214,700 from Rs215,800. Similarly, the gold price for 10 grams of 24-karat decreased to Rs184,070 from Rs185,020, showing a decline of Rs950. The price of 10 grams of 22-karat gold decreased to Rs168,730 while a single tola of 22-karat gold was being sold at Rs196,807.
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 markets. This decision follows a crackdown on alleged betting and smuggling activities by certain institutions. This is sparking speculation about potential actions against gold smugglers or a downward trend in the country’s precious metal market, leading to silence from the pricing body. It is worth noting that in the absence of official gold rates, consumers at jewelry shops are experiencing a state of confusion.
On the other hand, as of 1400 hours GMT, gold futures in the international market were available at $1,924.70 per ounce, showing a decrease of $0.10. Out of the $0.10 decrease, -$5.65 was due to strengthening of the US dollar and +$5.55 was due to predominant buyers, according to the Kitco Gold Index.
Gold price climbed towards $1,930 before retreating towards $1,920. With the benchmark 10-year US Treasury bond yield rising more than 1 percent on the day above 4.5 percent, gold price struggled to preserve its bullish momentum.
As risk sentiment turned sour, the investors preferred to stay on the sidelines, assessing major central banks’ ‘higher for longer’ rate view while renewed worries around China’s property markets also dented risk appetite.
Evergrande said late on Sunday that due to an investigation into Hengda Real Estate Group, a flagship onshore unit, it was unable to meet the qualifications to issue new notes under its debt restructuring proposal.
