Gold prices in the country lost traction on Monday and the price of one tola of 24-karat gold dropped by Rs1,750.

Gold prices in the country lost traction on Monday and the price of one tola of 24-karat gold dropped by Rs1,750.

According to the All-Pakistan Gems and Jewellers Association’s (APSGJA) data, the price of one tola of 24-karat gold decreased by Rs1,750 to Rs225,500. Similarly, the gold rate for 10 grams of 24-karat moved down to Rs193,330 with a decrease of Rs1,500. Following suit, 10 grams of 22-karat gold were being traded at Rs177,220.

In the international market, as of 1335 hours GMT, the gold futures were available at $1,957.20 per ounce, showing a decrease of $3.5 (-0.18 percent). Out of the $3.5 per ounce decrease, +$0.55 was due to weakening of the US dollar and -$4.05 was due to predominant sellers, according to Kitco Gold Index.

Gold price rose toward $1,970 level during early trading but lost its traction. As investors await May inflation data of the United States and the Federal Reserve’s policy announcements, the benchmark 10-year US T-bond yield remained steady above 3.7 percent, limiting gold’s action. The US dollar tracked the minor rebound in the US Treasury bond yields across the curve, although United States government bond buyers remained in the game amid renewed economic concerns and heightened expectations of a Federal Reserve rate hike pause on Wednesday.

Gold price also remained on the back foot after it was reported that physical gold demand slowed in China and India last week, forcing dealers to offer discounts, with volatile prices in India prompting buyers to delay purchases.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, high inflation, and currency depreciation. The gold price witnessed a decline in the local market despite depreciation in Pakistani rupee against the US dollar during the day. TLTP