Wednesday Oct 06, 2021
KARACHI: Gold gained for the second consecutive session on Wednesday ahead of the announcement of US employment data.
Bullion prices in the local market gained Rs600 per tola and Rs514 per 10 grams today to reach Rs115,600 and Rs99,108.
According to rates issued by All Sindh Sarafa Association, gold prices clocked in at Rs115,000 per tola and Rs98,594 per 10 grams on Tuesday (October 5).
Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had said: “Gold rates are expected to maintain stability, however, will be further determined later during the week.”
The analyst had said that monthly employment data of the US is scheduled to be announced on Friday, “which is one of the most important gold price determinants”.
He had clarified that if the unemployment data is encouraging it will dent sentiments of bullion investors, however, if the data is dismal, it will lend support to the bullion market.
It is pertinent to mention that the gold rates in Pakistan are around Rs500 below 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 today.
On Wednesday, the international gold price fell by $5 per ounce to $1,752 as firmer US Treasury yields and a stronger dollar dented the safe-haven metal’s appeal, with investors awaiting key US non-farm payrolls data due later this week.
Upward moves in the dollar and bond yields, after the light pullback seen over the last several days and a rebound in the equity market, are driving gold down, said David Meger, director of metals trading at High Ridge Futures.
The US dollar firmed near last week’s one-year high against major rivals, making gold more expensive for other currency holders.
— With additional input from Reuters