ISLAMABAD: Spot gold price edged lower for the second successive day on Wednesday as strong benchmark 10-year US Treasury bond yield and dollar made it difficult for the yellow metal to stage a rebound. As of 1245 hours GMT, gold in the international market was available at $1,812.60 per ounce, shedding $3.10 (-0.17 percent). Out of the $3.10 per ounce decrease, -$3.70 was due to strengthening US dollar and +$0.60 was due to predominant buyers, according to Kitco Gold Index. The price of 10 grams of 24-carat yellow metal in Pakistan, increased to Rs115,800 after gaining Rs200. Gold price in the local market remained Rs115,600 on Tuesday. An increase in the local gold prices was due to Pakistani rupee\u2019s continuous depreciation against the US dollar during the day, which eroded the dips gold made during the past two days. TLTP
\nGold Price faces headwinds from the resurgent haven demand for the US dollar, as investors fret over the growth and inflation concerns, in the face of the aggressive Federal Reserve rate hike expectations. On the other side, the negative shift in the market\u2019s perception of risk has boosted the risk-off flows into the US government bonds.
\nGold extended the previous day\u2019s rejection slide from the very important 200-day SMA. The markets seem convinced that the Federal reserve would need to take more drastic action to bring inflation under control.
\nInvestors remain worried about the potential economic fallout from the Russia-Ukraine war and the Covid-19 lockdowns in China. The mixed fundamental backdrop warrants caution for aggressive traders. Apart from this, the US bond yields will influence the dollar price dynamics.
\nOverall, gold\u2019s value has decreased by 8.34 percent or $165 per ounce during the last four weeks. A major factor pressuring gold prices lower was the dollar\u2019s strength. Over the last four trading weeks, the US dollar gained 4.15 percent in value.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Spot gold price edged lower for the second successive day on Wednesday as strong benchmark 10-year US Treasury bond yield and dollar made it difficult for the yellow metal to stage a rebound. As of 1245 hours GMT, gold in the international market was available at $1,812.60 per ounce, shedding $3.10 (-0.17 percent). Out […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-261299","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n