Gold price falls by Rs600 to Rs220,300 per tola

ISLAMABAD: Gold prices maintained their downward journey in the country after going down for the last three successive weeks, with the price of one tola of 24-karat gold dipping by Rs600.
According to the All-Pakistan Gems and Jewellers Association’s (APSGJA) data, the price of one tola of 24-karat gold decreased by Rs600 to Rs220,300 from Rs220,900. Similarly, the gold rate for 10 grams of 24-karat moved down to Rs188,870 from Rs189,390, showing a decrease of Rs520. Following suit, the gold price for 22-karat was recorded at Rs201,940 per tola against Rs 202,490 a day earlier and Rs173,130 per 10 grams against Rs173,600 a session earlier.
In the international market, as of 1325 hours GMT, the gold futures were available at $1,936.80 per ounce, showing a decrease of $14 (-0.72 percent). Out of the $14 per ounce decrease, -$2.85 was due to strengthening of the US dollar and -$11.15 was due to predominant sellers, according to Kitco Gold Index.
Gold prices turned south and dropped below the $1,940 threshold as the stronger-than-expected Building Permits reading for May provided a boost to the US dollar. Meanwhile, the 10-year US Treasury bond yield stayed in negative territory, helping the gold price limit its losses for the time being.
The US dollar Index has turned sideways as the upside is restricted around 102.60 despite Federal Reserve Chair Jerome Powell having confirmed that no rate cuts are appropriate this year. In spite of rising weekly jobless claims three times in a row, a jump in the US unemployment rate to 3.8 percent, and softening of consumer and producer inflationary pressures due to lower gasoline prices, the Federal Reserve believes that core inflation is still persistent and labour market conditions have not softened enough to announce victory over the sticky consumer price index (CPI).
Gold prices in the country eased by Rs5,550 (-2.44 percent) per tola last week, falling for the third straight week, while gold prices in the international bullion markets edged lower by 0.13 percent after rising for two consecutive weeks.
The domestic gold market has been volatile for the last 15 months due to economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge to protect themselves against inflation and currency depreciation. The delay in the revival of the IMF programme negatively impacted the currency market which in turn is bolstering demand for gold. – TLTP