ISLAMABAD: Gold prices in the country decreased by Rs1,700 per tola on Monday as prices lowered in the 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 fell to Rs234,500 from Rs236,200. Similarly, the gold rate for 10 grams of 24-karat reached Rs201,050 from Rs202,450, showing a decrease of Rs1,400. The gold price for 22-karat was recorded at Rs214,000 against Rs215,650 per tola a session ag0. Likewise, the gold rate for 10 grams of 22-karat decreased to Rs184,300 from Rs185,470.
As of 1405 hours GMT, the gold futures in the international market were available at $1,946.60 per ounce, showing an increase of $0.40 (0.02 percent). Out of the $0.40 per ounce increase, -$0.75 was due to strengthening of the US dollar and +$1.15 was due to predominant buyers, according to Kitco Gold Index.
Gold price dipped globally amid mixed concerns surrounding the US debt limit extension. Adding strength to the corrective bounce could be the holidays in the major markets including the US, as well as anxiety ahead of this week’s US Nonfarm Payrolls (NFP). That said, a deal to avoid the US debt payment default lacks unanimous support from some among the Republicans and Democrats, which in turn hints at a political drama over the passage of the key agreement to avoid the looming default on June 05. The same prods the Gold Price buyers.
Apart from that, hawkish hopes from the US Federal Reserve (Fed), backed by upbeat US data and hawkish comments from the Fed policymakers, as well as from Monetary Fund Managing (IMF) Director Kristalina Georgieva, also challenge the gold price upside.
Hence, gold traders may witness further consolidation of the latest losses but the bullish trend hinges on the US data, the debt ceiling deal’s passage and the gold buyer’s ability to conquer the $1,951 resistance.
The domestic gold market has remained volatile for the last one year due to economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge to protect themselves against inflation and currency depreciation. – TLTP