Gold price surges to Rs225,300 per tola

ISLAMABAD: Gold prices in the local market remained on an upward slide on Tuesday toeing the international market, and price of one tola of 24-karat gold reached Rs225,300.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs225,300. Similarly, the gold price for 10 grams of 24-karat was recorded at Rs 193,150 as per the bullion market.
The gold rate in the country for a single tola of 22-karat was recorded at Rs206,500 while price for 10 grams of 22-karat was recorded at Rs177,050.
The major reason for the increase in prices in the local market is because of the international rates as well as PKR-USD parity. In the global markets, the US dollar and gold go inverse, as if the dollar weakens then gold raises and vice versa.
As of 1300 hours GMT, gold futures in the international market were available at $1,959.60 per ounce, showing an increase of $5.50 (+0.28 percent). Out of the $5.50 per ounce increase, -$1.15 was due to strengthening of the US dollar and +$6.65 was due to predominant buyers, according to Kitco Gold Index.
Gold continues to trade in a tight range above $1,950 as investors await consumer confidence data from the US. The 10-year US Treasury bond yield clings to small daily gains at around 3.9%, making it difficult for gold price to gain traction. Gold price turns back and forth after a decent recovery as the upside in the US Dollar Index seems limited.
The precious metal consolidates as market participants focus on the interest rate decision by the Federal Reserve (Fed) due Wednesday. An interest-rate hike of 25 basis points (bps) looks certain, but the catalyst that is haunting investors’ sentiment is the guidance about future rate hikes and discussions about rate cuts. – TLTP