ISLAMABAD
Gold prices in the local market edged lower for the second straight session following a dip in price in the international bullion market on Tuesday and fell by Rs200 per tola.
According to the Karachi Sarafa Association, the price of one tola of 24-karat gold decreased to Rs214,000 from Rs214,200. Similarly, the gold price for 10 grams of 24-karat gold decreased to Rs183,470 from Rs183,642, showing a decrease of Rs172. In the last session, local gold prices decreased by Rs400 to settle at Rs214,200 per tola. With a premium of $20, the international rate of gold on Tuesday was set at $1,979, All Pakistan Gems and Jewellers Sarafa Association said.
On the other hand, as of 1250 hours GMT, gold futures in the international market were available at $1,958.40 per ounce, showing a decrease of $19.10.
Out of the $19.10 decrease, +$6.90 was due to strengthening of the US dollar and -$12.20 was due to predominant sellers, according to the Kitco Gold Index.
Gold price dropped to a near two-week low as investors channel funds into the US dollar and bond yields rose. Geopolitical tensions stayed more or less unchanged fading the appeal of gold. Gold price extended downside marginally below $1,960 after several failed attempts of stabilization above the psychological resistance of $2,000. A recovery in the US dollar and long-term bond yields further weighed on the precious metal.
The downside move in gold, however, may be short-lived as investors see an end to the Federal Reserve’s rate-tightening campaign, due to gradually easing consumer inflation and higher treasury yields, which have tightened financial conditions significantly.
Israeli Prime Minister Benjamin Netanyahu has allowed entry of humanitarian aid to and the exiting of hostages from Gaza, but rejected a general ceasefire. Geopolitical tensions would keep broader demand for gold intact. TLTP
