Tag: Treasury yields

  • Reversal trend: Gold price settles at Rs216,100 per tola, erasing recent upsurge

    Reversal trend: Gold price settles at Rs216,100 per tola, erasing recent upsurge

    In Wednesday’s trading session, the domestic gold market witnessed a reversal, wiping out gains from the previous day. 

    The price of 24-karat gold in Pakistan experienced a notable decline, dropping by Rs300 per tola to reach Rs216,100. 

    The Karachi Sarafa Association reported that the price of 10-gramme 24-karat gold also reflected this downturn, standing at Rs185,271 with a decline of Rs257. 

    Similarly, the price of 10-gramme 22-karat gold experienced a decrease, reaching Rs169,832, down by Rs235.

    Silver prices followed suit, with 24-karat silver selling at Rs 2,650 per tola and Rs 2,271.94 per 10-gram. 

    The decline in the domestic market is attributed to a slight dip in international prices and the persistent strengthening of the home currency.

    The international spot gold market observed a $3 drop when the Karachi Sarafa Association released the local gold rates. 

    This decrease is attributed to a stronger US dollar and elevated Treasury yields. Market participants are eagerly awaiting the US inflation report scheduled for Thursday, anticipating insights into the US Federal Reserve’s stance on a potential policy shift.

    Furthermore, the ongoing appreciation of the Pakistani rupee (PKR) against the greenback continues to exert additional pressure on the domestic gold market. 

    In the preceding session, the PKR secured its fifth consecutive victory against the US dollar, breaking a 13-day upside streak. 

    The dynamics of international and domestic factors are shaping the trajectory of the gold market, making it a focal point for investors and analysts alike.

  • Seasonal demand: Gold price increases by Rs5,600 to Rs207,500 per tola

    Seasonal demand: Gold price increases by Rs5,600 to Rs207,500 per tola

    On Friday, gold prices in Pakistan experienced a significant increase due to seasonal demand and the rush to purchase the precious metal during Ramadan and the upcoming wedding season.

    According to data from the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold surged by Rs5,600 per tola and Rs4,801 per 10 grammes to settle at Rs207,500 and Rs177,898, respectively.

    In recent sessions, the price of gold had decreased due to a decline in international prices and the appreciation of the Pakistani rupee against the US dollar. However, the bullion sparkled once again on Friday as local markets reopened following a day off for Pakistan Day.

    The price of gold in Pakistan is strongly influenced by the rupee-dollar parity since almost all of the country’s gold demand is met through imports, with traders following international prices to set rates. The metal is imported by jewelers against the US dollar and UAE dirham before its price is converted into rupees.

    The APSGJA also noted that the price of gold in Pakistan was Rs12,000 per tola cheaper than in the Dubai market, indicating that the Pakistani gold market was currently less expensive than the global market.

    Meanwhile, in the international market, gold prices continued to rise on Friday, buoyed by a drop in Treasury yields after the US Federal Reserve hinted at a possible end to its monetary tightening cycle. The per-ounce price settled at $1,997 after a significant increase of $58.

    The longer-term prospects for gold remain positive due to expectations of a pause in US interest rate hikes. In addition, silver prices in the domestic market rose by Rs20 per tola and Rs17.15 per 10 grammes, settling at Rs2,220 per tola and Rs1,903.29 per 10 grammes, respectively.