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Sunday, July 3, 2022

In Pakistan, the gold price conatinues to grow, rising by Rs750 per tola.

KARACHI: On Wednesday, the gold price in Pakistan rose in line with the international market, despite the devaluation of the Pakistani rupee.

The price of the precious metal increased by Rs750 per tola and Rs643 per 10 gramme, respectively, to Rs125,550 and Rs107,639 per tola.

During the last two sessions, the safe-haven asset has gained Rs1,350 per tola.

Gold rose $9 per ounce to $1,827 on the international market, as US Treasury yields fell ahead of widely expected solid inflation data from the US, keeping metal investors on the edge.

According to Extinity analyst Han Tan, gold prices are attempting to retest the $1,830 resistance level, which has resisted bullion bugs on many occasions since July 2021.

“The ramifications of Thursday’s US inflation statistics, where more evidence of persistent inflationary pressures rouses the Fed into a more aggressive policy stance might reduce the precious metal’s attraction, could dampen the precious metal’s allure.”

Analysts predict gold prices to remain fairly unchanged until the release of January’s US CPI statistics, which could provide more clues about the rate hike timeline.

While a strong inflation report will strengthen gold’s position as an inflation hedge, rising US interest rates will increase its opportunity cost as a non-yielding asset.

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

Meanwhile, silver prices rose Rs10 per tola and Rs8.57 per gramme in the domestic market Wednesday, settling at Rs1,460 per tola and Rs1,251.71 per gramme.

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