ISLAMABAD: Gold prices in the local market snapped a six-day winning streak on Tuesday following rupee’s depreciation against the US dollar despite the international prices fell by 0.64 percent.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs215,000 from Rs209,400, showing an increase of Rs5,600.
During the last seven days, gold prices fell by Rs24,600 a tola in the country. This rise in the gold price was attributed to the depreciation of the rupee against the US dollar in the open market by Rs2. It was earlier reported that Pakistani jewellers were pricing gold while keeping the dollar exchange rate at Rs294 and that is why the bullion prices saw a big jump.
Similarly, the gold price for 10 grams of 24-karat surged to Rs184,585 from Rs179,527, depicting an increase of Rs5,058. Following suit, the 22-karat gold rates for 10 grams went up to Rs168,697 from Rs164,566 with an increase of Rs4,1431.
On the other hand, as of 1255 hours GMT, gold futures in the international market were available at $1,909.50 per ounce, showing a decrease of $12.30 (-0.64 percent). Out of the $12.30 decrease, -$5.65 was due to strengthening of the US dollar and -$6.65 was due to predominant sellers, according to the Kitco Gold Index.
Gold price remained under pressure as investors turned cautious ahead of the United States Consumer Price Index (CPI) data for August. The precious metal turned vulnerable as a strong recovery in gasoline prices indicated that headline inflation likely expanded at a higher pace in August, which could spoil the market mood and might improve the appeal for the US dollar.
The US Dollar recovered swiftly on Tuesday as the American economy is absorbing the repercussions of higher interest rates by the Federal Reserve efficiently, unlike other economies that are struggling to keep the labour market stable due to a restrictive monetary policy. August inflation data will be of utmost importance as it will be the latest one ahead of the September monetary policy. – TLTP