By Staff Reporter
ISLAMABAD: Gold price decreased in the country for the third session in a row by Rs6,200 per tola on Thursday in line with a consistent drop in the price in the international market.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold decreased to Rs242,000 from Rs248,200. Similarly, the price for 10 grams of 24-karat gold decreased to Rs207,476 from Rs212,791, showing a dip of Rs5,315. Likewise, the price for 10 grams of 22-karat gold decreased to Rs190,186 from Rs195,059, going down by Rs4,873. Earlier on Monday and Tuesday, the gold price in the local market came down by Rs1,900 and Rs300 per tola, respectively.
It is worth noting that the price has been kept Rs4,000 below its actual cost, the Karachi Sarafa Association reported, saying: “In view of the significant reduction in purchasing power, the price of gold today has been kept under cost by Rs4,000.”
The gold price in the country surged by Rs7,100 per tola in April. It may be noted that the gold price hit an all-time high in Pakistan on April 20 when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time highs of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9.
On the other hand, gold futures in the international market as of 1330 hours GMT were available at $2,363 per ounce, showing a decrease of $15. Out of the $15 decrease, +$6.30 was due to weakening of the US dollar and -$21.30 was due to predominant sellers, according to the Kitco Gold Index.
Gold struggled to stage a rebound and traded in negative territory below $2,370 following Wednesday’s sharp decline. The benchmark 10-year US Treasury bond yield held steady above 4.4 percent and made it difficult for the gold price to make gains.
Minutes of the Federal Reserve meeting suggested that the Fed could stick to its ‘higher rates for longer’ stance, weighing further on expectations of interest rate cuts this year. The hawkish Fed minutes helped the US dollar regain its recovery momentum, with US Treasury bond yields also rising. This weighed heavily on the non-interest-bearing gold price.
