Monday Sep 27, 2021
KARACHI: Gold prices recorded a meagre gain of Rs50 per tola in the local market on Monday.
The metal's was up Rs50 at Rs113,550 per tola and increased by Rs43 to Rs97,351 per 10 grams.
The rates of gold were Rs113,500 per tola and Rs97,308 per 10 grams on Saturday.
However, it is pertinent to mention that gold rates in Pakistan are around Rs1,000 below the cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,400 per tola and Rs1,200.27 per 10 grams on Monday.
Gold prices were subdued on Monday, pressured by an uptick in US bond yields and a robust dollar, as investors awaited speeches from Federal Reserve policymakers for clues on when the central bank could taper its pandemic-era economic support.
Spot gold was down 0.1% at $1,747.99 per ounce, US gold futures eased 0.2% to $1,748.90.
Denting gold’s appeal by raising its opportunity cost, benchmark 10-year US Treasury yields rose to their highest level in nearly three months. The dollar also strengthened, adding further pressure.
“Gold seems to be in an extended period of doldrums and is unable to shake itself either way, with firmer 10-year Treasury yields and a robust dollar acting as headwinds,” independent analyst Ross Norman said.
Market focus will now be on speeches by Fed officials this week including Chair Jerome Powell, who will testify before Congress on the central bank’s policy response to the pandemic.
Gold is often considered a hedge against higher inflation, but a Fed rate hike would increase the opportunity cost of holding gold, which pays no interest.
— With additional input from Reuters