ISLAMABAD: Gold price in the country declined for the third straight week by Rs2,150 (-0.99 percent) per tola, following an uptick in prices in the international markets.
The gold rate for a single tola of 24-karat decreased to Rs215,300 from Rs217,450 during the week, according to the data shared by different jeweller associations. Similarly, the price of 10 grams of 24-karat gold closed at Rs184,585 against Rs185,614 at the start of the week, reflecting a dip of Rs1,029.
In global markets, gold closed the week at $2,029.20 per ounce against $2,048.70 in the preceding week, showing a week-on-week dip of $19.50 (-0.95 percent).
The Pakistani rupee continued making slight gains against the US dollar for the 10th week in a row and improved by Rs0.46 (+0.16 percent week-on-week. Since gold is denominated in the US dollars, when the local unit appreciates against the greenback, the value of gold in the local market decreases if all other factors remain the same. A minor difference in gold value’s depreciation in the local and international markets is due to appreciation of the local unit against the greenback during the week under review.
Gold started the week under bearish pressure and fell during the first three days of the week. Though gold bounced back during the last two sessions, it failed to erase its losses and registered around one percent dip week-on-week. Investors still see a strong probability that the Federal Reserve (Fed) will opt for a rate cut in March, not allowing US bond yields to push higher and supporting the gold prices.- TLTP