ISLAMABAD: Gold prices in the local market increased by Rs2,900 per tola on Wednesday due to the rupee\u2019s consistent depreciation and an uptick in global prices where gold touched its highest level since early August. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs236,400 from Rs233,500. Similarly, the gold price for 10 grams of 24-karat surged to Rs202,675 from Rs200,189, depicting a rise of Rs2,486. Similarly, the 22-karat gold rates for 10 grams went up to Rs185,785 from Rs183,506 with an increase of Rs2,279.TLTP
\nMarket analysts attributed the surge in gold prices to the ongoing volatility in both the foreign exchange and financial markets. As traditional investment options display uncertainty, investors are turning to gold as a safe haven to safeguard their wealth. This heightened demand for the yellow metal has acted as a catalyst for the price escalation.
\nThe exchange rate and international market prices play a direct and influential role in shaping the prices of precious metals like gold in Pakistan. The Pakistani rupee\u2019s depreciation against the US dollar kept the gold price high in the country. The rupee depreciated by Rs3.45 during the last three days.
\nThe price of gold has also increased, as political uncertainty surrounding the general election is causing turbulence in local markets. This rise in local prices indicates a trend of increased demand for gold among local investors.
\nOn the other hand, as of 1315 hours GMT, gold futures in the international market were available at $1,944.40 per ounce, showing an increase of $7.20 (+0.37 percent). Out of the $7.20 increase, +$6.60 was due to weakening of the US dollar and +$0.60 was due to predominant buyers, according to the Kitco Gold Index.
\nGold price touched its highest level since early August above $1,940 after the Automatic Data Processing (ADP) showed that private sector employment in the USA grew at a softer pace than expected in August. The 10-year US yield turned south and retreated towards 4.14 percent from 4.20 percent, providing an additional boost to gold price. The weaker US dollar and a sharp drop in US Treasury yields dragged the greenback lower across the board.
\nThe odds of additional rate hikes by the Federal Reserve (Fed) might cap the upside for gold. It\u2019s worth noting that gold is sensitive to rising interest rates as they raise the opportunity cost of holding non-yielding bullion. That said, Fed Chairman Jerome Powell stated at the Jackson Hole Symposium that he would open the door for more rate hikes. However, it would depend on incoming data.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Gold prices in the local market increased by Rs2,900 per tola on Wednesday due to the rupee\u2019s consistent depreciation and an uptick in global prices where gold touched its highest level since early August. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to […]<\/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-352771","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n