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Monday, July 4, 2022

The gold rise has slowed in line with the rest of the world’s markets.

KARACHI: On Wednesday, the gold price in Pakistan recovered losses in accordance with the international market, owing to a strengthening of the Pakistani rupee.

The price of the precious metal increased by Rs100 per tola and Rs86 per gramme, respectively, to Rs126,900 and Rs108,796, respectively.

However, gold merchants claim that there is no demand in the local market due to a lack of purchasing power.

Gold rose $1 per ounce to $1,895 on the international market as riskier assets recovered, with bullion investors anticipating further developments on the Ukraine issue while also prepared for anticipated policy tightening by major central banks.

“Gold has calmed below the psychologically crucial $1,900 level as the market’s biggest concerns about Russian penalties were not realised,” Han Tan, chief market analyst at Exinity, said.

“Should concerns about geopolitical tensions fade, the US Fed’s policy tightening path would become the key driver of gold prices, with additional rises in real Treasury rates likely to unwind the geopolitical risk premiums currently baked into gold prices,” Tan added.

It’s worth noting that gold prices in Pakistan are roughly Rs4,000 lower than those on the Dubai market.

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

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