29 C
Lahore
Monday, July 4, 2022

As investors anticipate US employment data, gold remains stable.

KARACHI: In Pakistan, the price of gold remained steady at Rs125,550 per tola and Rs107,639 per gramme.

On Wednesday, rates increased by Rs750 per tola and Rs643 per 10 gramme.

Previously, the precious metal has risen due to variations in the rupee-dollar parity, as Pakistan imports the majority of its gold.

However, gold dealers lament the lack of activity, which they attribute to unpredictable market conditions and a lack of purchasing power.

Gold prices around the world have been fluctuating between $1,790-$1,830.

As investors anticipated US inflation statistics for clues on the next steps in the US Federal Reserve’s monetary policy tightening plans, gold rose $7 to $1,834 on the international market.

“Gold appears to be reclaiming its role as an inflation hedge, moving independently of US yields,” said Michael Hewson, chief market analyst at CMC Markets UK.

“If inflation expectations rise, gold may rise as the Fed tightens too quickly, potentially slowing the global economy,” he warned.

The consumer price index in the United States is estimated to have risen 7.3 percent on an annual basis in January, the highest increase since 1982.

Gold’s appeal as an inflation hedge is expected to be bolstered by a strong inflation figure, but interest rate hikes would raise the opportunity cost of owning non-yielding bullion.

However, when compared to the gold pricing in the Dubai market, the gold prices in Pakistan is roughly Rs500 lower.

Meanwhile, silver prices in India stayed constant Monday at Rs1,460 per tola and Rs1,251.71 per ten gramme.

Latest news
Related news