Gold surges by Rs800 per 10gm as USD struggles


ISLAMABAD: Gold prices consolidated previous day’s gains on Tuesday as the US dollar retraced lower from a 16-month high.
As of 1315 hours GMT, gold in the international market was available at $1,806.80 per ounce, gaining $10.20. Out of $10.20 per ounce gain, $5.35 was due to the dollar’s weakness.
The price of 10 grams of yellow metal in Pakistan, meanwhile, increased to Rs102,500 after gaining Rs800. Gold in the local market was available at Rs101,700 on Monday last. A relatively higher increase in the local gold prices was also due to overnight change in the international prices when the local market was closed.
The US dollar fell on Monday, posting its largest daily fall since last November as investors consolidated gains after hitting a 16-month high on Friday on expectations of a faster pace of rate hikes by the Federal Reserve. The USD witnessed aggressive long-unwinding trade and extended some support to the yellow metal.
A weaker US dollar makes USD-denominated gold cheaper for holders of international currency, while lower US Treasury bond yields reduce the opportunity cost of holding non-yielding precious metals. – TLTP