Gold price rises to Rs233,500 per tola


ISLAMABAD, (TLTP): Gold prices in the local market increased by Rs500 on Tuesday due to the rupee’s consistent depreciation, despite a slight dip in the international prices.

According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs233,500 from Rs233,000. Similarly, the gold price for 10 grams of 24-karat surged to Rs200,189 from Rs199,760, depicting a rise of Rs429. Similarly, the 22-karat gold rates for 10 grams went up to Rs183,506 with an increase of Rs393.

Market analysts attributed the surge in gold prices to the ongoing volatility in both the foreign exchange and financial markets. As traditional investment options display uncertainty, investors are turning to gold as a safe haven to safeguard their wealth. This heightened demand for the yellow metal has acted as a catalyst for the price escalation.

The exchange rate and international market prices play a direct and influential role in shaping the prices of precious metals like gold in Pakistan. The Pakistani rupee’s depreciation against the US dollar kept the gold price high in the country. The rupee depreciated by Rs2.05 during the last two days.

The price of gold has also increased, as political uncertainty surrounding the general election is causing turbulence in local markets. This rise in local prices indicates a trend of increased demand for gold among local investors.

On the other hand, as of 1305 hours GMT, gold futures in the international market were available at $1,917.20 per ounce, showing a decrease of $2.40 (-0.13 percent). Out of the $2.40 decrease, -$4.60 was due to strengthening of the US dollar and +$2.20 was due to predominant buyers, according to the Kitco Gold Index.

Gold price struggled to sustain above $1,920 as the Federal Reserve (Fed) held economic indicators accountable for further policy action. Fed Chair Jerome Powell reiterated at the Jackson Hole Symposium that the central bank will remain data-dependent. Powell added that inflation has become more responsive to the labor market, so upcoming JOLTS and other job-market-related data later this week are set to be crucial to determining the Fed’s next steps.

The US employment and ISM Manufacturing PMI data will remain on investors’ radar. The weightage of August labour market data is expected to remain high as it will provide a base for September’s interest rate decision. Investors hope that hiring momentum slows as US firms are banking on lower operating capacity due to a delicate economic outlook. Also, the US factory activity is expected to contract for the ninth straight month. TLTP

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