Gold gains traction, rises by Rs4,000 a tola

By Daily Independent On Jul 13, 2023

ISLAMABAD, ((Ind:Report): Gold prices in the local market gained traction on Thursday due to an overnight surge in prices in global markets, with the price of one tola of 24-karat gold rising to Rs208,000.

Gold prices picked an upward trajectory in Pakistan, a day after dropping in the local market. Gold prices in global markets rose around one percent a day earlier due to lower than expected inflation figures in the United States. As the local market was closed at that time due to time difference, the rate hike was adjusted on Thursday.

According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased by Rs4,000 to Rs208,000 from Rs204,000. Similarly, the gold rate for 10 grams of 24-karat increased to Rs178,325 from Rs174,900, showing an increase of Rs3,425. Likewise, 10 grams of 22-karat gold were being traded at Rs163,780.

As of 1330 hours GMT, gold futures were available at $1,959.40 per ounce, showing an increase of $2.10 (+0.11 percent). Out of the $2.10 per ounce increase, +$8.20 was due to weakening of the US dollar and -$6.10 was due to predominant sellers, according to Kitco Gold Index.

Gold price lost its traction and retreated below $1,960 as the benchmark 10-year US Treasury bond yield staged a rebound after the data from the US showed a decline in weekly jobless claims, making it difficult for gold price to extend its rally.

Gold price faced fragile barricades while attempting to surpass the immediate resistance of $1,960.00 in the late Asian session. The precious metal is expected to resume its upside journey as inflationary pressures in the United States have softened dramatically and are sufficient to encourage the Federal Reserve to go with only one interest rate hike by year-end.

On the other hand, the US Dollar Index turned sideways around 100.50 after a five-day losing streak as the sheer softening of the United States Consumer Price Index (CPI) has trimmed fears of a potential recession.