Gold price rises to Rs222,200 per tola

ISLAMABAD: Gold prices in the local market increased by Rs1,100 per tola on Wednesday despite a dip in the international prices.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs222,200 from Rs221,100. Similarly, the gold price for 10 grams of 24-karat increased to Rs190,500.
On the other hand, as of 1350 hours GMT, gold futures in the international market were available at $1,923.40 per ounce, showing a decrease of $1.60 (-0.08 percent). Out of the $1.60 per ounce decrease, +$2.45 was due to weakening of the US dollar and -$4.05 was due to predominant sellers, according to Kitco Gold Index.
Gold price started the day on a firm footing and climbed above $1,930. With the 10-year US Treasury bond yield holding steady above 4 percent, the gold price lost its recovery momentum and retreated toward $1,920. Gold price capitalizes on correction in the US dollar propelled by positive market sentiment. The precious metal rebounded as Federal Reserve policymakers anticipate that interest rates by the central bank have peaked for now. Also, the Federal Reserve could consider rate cuts next year if inflation continues to decelerate and job hiring slows further.
For September’s monetary policy guidance, investors await Thursday’s United States Consumer Price Index (CPI) data. Investors expect a rebound in headline CPI after a soft spell as recovered oil prices lift gasoline prices. US hiring slowed in July while the US Unemployment Rate remains near historic lows. Now July’s inflation data will set a base for the next interest rate decision. – TLTP