ISLAMABAD: Gold prices in the local market came down on Thursday after the international bullion prices fell to over three-week low, decreasing by Rs1,200 per tola. According to the data sourced from reliable outlets from different cities of the country, as Thursday was a public holiday in the country, the price of one tola of 24-karat gold decreased to Rs213,000 from Rs214,200. Similarly, the gold price for 10 grams of 24-karat gold decreased to Rs182,613 from Rs183,642, showing a decrease of Rs1,029. Meanwhile, the gold price for 22-karat gold reduced to Rs195,250 per tola and Rs167,395 for 10 grams. On the other hand, as of 1035 hours GMT, gold futures in the international market were available at $1,945.10 per ounce, showing a decrease of $4.70. Out of the $4.70 decrease, -$2.05 was due to strengthening of the US dollar and -$2.65 was due to predominant sellers, according to the Kitco Gold Index. Gold price remained depressed for the fourth straight day on Thursday and dropped to the $1,944 area, or a fresh low since October 18. The precious metal, however, managed to bounce off a bit as traders awaited more cues on the Federal Reserve’s (Fed) future rate-hike path before placing fresh directional bets. Hence, the focus will remain glued to the Fed Chair Jerome Powell’s speech later during the day, which will influence the US dollar price dynamics and provide some meaningful impetus to the commodity. In the meantime, a modest recovery in the US Treasury bond yields lent some support to the USD, which, along with easing fears about a further escalation in the Israel-Palestine conflict, should act as a headwind for the safe-haven gold price. The downside, however, remains cushioned as investors now seem convinced that the Fed is nearing the end of its rate-hiking cycle. Furthermore, concerns about the worsening economic conditions in China should continue to limit losses for the precious metal, warranting caution for aggressive bearish traders. TLTP
