KARACHI: On Wednesday, the price of a tola of gold in Pakistan closed the day at Rs142,200.
Gold prices today remained stable at Rs142,200 per tola and Rs121,914 for 10 grammes, according to rates published by the All Sindh Sarafa Association.
Before the market closed for the Eid ul Adha holiday, the price of the yellow metal increased by a total of Rs500 per tola.
In the meantime, today’s domestic silver prices remained constant at Rs. 1,520 per tola and Rs. 1,303.15 per 10 grammes.
international market
As investors await US inflation data for clues on the Federal Reserve’s policy tightening path, the price of yellow metal dropped $13 per ounce to settle at $1,730 on the international market.
“Rising interest rates and a dollar store right now. These two major factors are having an impact on the price of gold, according to City Index market analyst Fawad Razaqzada.
It appears that $1,700 will be the next target. The event that causes gold to drop to that level could be today’s strong CPI report from the U.S.
The Consumer Price Index (CPI) for June according to the US Labor Department is predicted to have increased on a monthly and annual basis by 1.1% and 8.8%, respectively.
As the Fed attempts to contain soaring inflation, higher-than-expected inflation could support market expectations for a 75-basis-point interest rate increase by the central bank later this month.
Despite the fact that gold is regarded as a hedge against inflation, higher rates tend to drive away investors from bullion because they drive up bond yields and increase the opportunity cost of holding zero-yield gold.
