ISLAMABAD: Gold prices in the local market surged by Rs2,400 per tola on Tuesday following an increase in international prices where the yellow metal touched two-week high.
The price of one tola of 24-karat gold surged to Rs220,400 from Rs218,000. Similarly, the gold price for 10 grams of 24-karat increased to Rs189,960. The price of 10 grams of 22-karat gold remained Rs171,324 while a single tola of 22-karat gold was being sold at Rs199,832.
It is to be noted that local bullion pricing body, Karachi Sarafa Market, has refrained from announcing daily commodity prices since Wednesday and the prices quoted above are being collected from different markets. This is sparking speculation about potential actions against “gold smugglers” or a downward trend in the country’s precious metal market, leading to silence from the pricing body.
On the other hand, as of 1320 hours GMT, gold futures in the international market were available at $1,933.60 per ounce, showing an increase of $0.10. Out of the $0.10 increase, +$1.10 was due to weakening of the US dollar and -$1 was due to predominant sellers, according to the Kitco Gold Index.
Gold price fluctuated in a relatively tight channel above $1,930 after closing the Monday session in positive territory. The 10-year US Treasury bond yield held steady at around 4.3 percent, not allowing gold prices to make a decisive move in either direction.
Gold price resumes its three-day winning spell as the Federal Reserve is expected to keep the monetary policy unchanged on Wednesday. The precious metal is at a two-week high at around $1,935 after discovering buying interest near the 200-day Exponential Moving Average (EMA), which traded at around $1,910. The yellow metal has climbed above the 20-day and 50-day EMAs, which indicates that the short-term trend has turned bullish. Investors remain curious about the guidance on interest rates as a hawkish outlook would trigger a risk-aversion theme. – TLTP