Gold slips by Rs1,800 to Rs236,000 per tola

ISLAMABAD: Gold prices in the country came down by Rs1,800 per tola on Thursday, as gold prices dipped 0.5 percent in international bullion markets.
According to the All-Pakistan Sarafa Gems and Jewellers Association’s (APSGJA) data, the price of one tola of 24-karat gold fall by Rs1,800 to Rs236,000. Similarly, the gold rate for 10 grams of 24-karat reached Rs202,330 from Rs203,875, showing a decrease of Rs1,545 . The gold price for 22-karat was recorded at Rs217,370 against Rs215,700 per tola a session ag0, with a decrease of Rs1,670. Likewise, the gold rate for 10 grams of 22-karat decreased to Rs185,470 from Rs186,880, with a decrease of Rs1,410.
As of 1305 hours GMT, the gold futures in the international market were available at $1,947.70 per ounce, showing a decrease of $9.80 (0.50 percent). Out of the $9.80 per ounce decrease, -$5.45 was due to strengthening of the US dollar and -$4.35 was due to predominant sellers, according to Kitco Gold Index.
During the intraday trade, gold price dropped below $1,940 for the first time in two months. The benchmark 10-year US Treasury bond yield went 1 percent up on the day near 3.8 percent on the back of better-than-expected US data, forcing gold to stay on the back foot. Risk aversion weighs on financial markets, with the US Dollar making the most of it.
Gold’s fall was fueled by comments from United States House Speaker Kevin McCarthy following another round of talks with President Joe Biden on the extension of the debt ceiling. McCarthy said they are still apart on a number of things, remarking Republicans aim for spending cuts and no tax hikes. Finally, he added that the US would not default and that they still eventually reach a deal. This makes risk-on assets more attractive for investors, and risk-off assets like gold, less attractive. – TLTP