Yellow metal’s international price drops to $1,889 per ounce.gold prices
Each tola of silver now costs Rs. 50 more.
KARACHI: Despite a downward trend in the international market, gold rates in Pakistan continued to rise on Saturday, rising for the fifth session in a row.
1,500 per tola and Rs 1,286 per 10 kilos, according to data made public by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), to settle at Rs 226,800 and Rs 194,444, respectively.
The price of the yellow gold dropped an additional $5 to finish today’s trading at $1,889 per ounce while still falling.
Despite minimal movement on Friday, gold was on track for its third consecutive weekly decline due to recent strong US economic statistics that increased expectations that interest rates would continue to rise.
According to Phillip Streible, chief market strategist at Blue Line Futures in Chicago, “gold’s got a problem where it’s competing with instruments that are yielding 4-5%”, such as bonds, whereas gold yields nothing in comparison.
“In the current environment, it just doesn’t seem like the best asset class to be in.”
In a note, Ole Hansen, head of commodity strategy at Saxo Bank, warned that gold “may continue to struggle drawing demand from investors until something breaks, either through a credit event, a weaker dollar, or the belief the FOMC has switched its focus towards cutting rates.”
Rs5,000 per tola over the previous five days in the local market.
The price of silver jumped by Rs50 and Rs42.86, according to data provided by the association, to settle at Rs2,800 per tola and Rs2,400.54 for every 10 grams, respectively.
