ISLAMABAD: Gold prices in the local market declined on Wednesday due to appreciation of rupee against the US dollar for two consecutive days, with the price of one tola of 24-karat gold diving to Rs204,000. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold decreased by Rs500 to Rs204,000 from Rs204,500. Similarly, the gold rate for 10 grams of 24-karat decreased to Rs174,900, showing a decrease of Rs426. Likewise, 10 grams of 22-karat gold were being traded at Rs163,780. Interestingly, the gold rates in the domestic market are showing a downward trend despite a surge in international markets. As of 1345 hours GMT, gold futures were available at $1,953.10 per ounce, showing an increase of $20.90 (+1.08 percent). Out of the $20.90 per ounce increase, +$3.65 was due to weakening of the US dollar and +$17.25 was due to predominant buyers, according to Kitco Gold Index. Gold price has displayed a stellar run as the United States Bureau of Labor Statistics has reported softer-than-expected June Consumer Price Index (CPI) data. The monthly headline and core inflation has reported a pace of 0.2 percent while investors were anticipating a higher velocity of 0.3 percent. TLTP
\nAnnualized headline CPI has softened to 3 percent against the consensus of 3.1 percent and the former release of 4 percent. While annualised inflation has decelerated to 4.8 percent against the estimates of 5 percent and the prior release of 5.3 percent. More-than-anticipated cool-down in inflationary pressures would trim expectations of an interest rate hike by the Federal Reserve in its July monetary policy meeting.
\nThe factors contributing to the decline in gold prices locally, despite the international market\u2019s upward movement, can be attributed to various economic factors. A strengthening of the Pakistani rupee against the US dollar makes gold imports less expensive, reducing the overall demand for gold in the country.
\nIt remains to be seen how the gold market in Pakistan will respond to these recent developments. Market participants will continue to monitor the interplay between the local currency\u2019s value and international gold prices to gauge future trends and investment opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Gold prices in the local market declined on Wednesday due to appreciation of rupee against the US dollar for two consecutive days, with the price of one tola of 24-karat gold diving to Rs204,000. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold decreased by […]<\/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-342610","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n