Gold gains Rs200 per tola as traders eye US Federal Reserve meeting

By
Business Desk
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Gold bars are seen at the Austrian Gold and Silver Separating Plant Oegussa in Vienna, Austria, March 18, 2016. — Reuters/File
Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. — Reuters/File 

  • Gold prices in the local bullion market gain Rs200 per tola and Rs171 per 10 grams.
  • Silver prices in the domestic market remain unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.
  • In the international market, the yellow metal records a meagre decrease of $2 per ounce to close at $1,785.


KARACHI: Gold prices in the local bullion market gained Rs200 per tola and Rs171 per 10 grams on Tuesday to close at Rs124,700 per tola and Rs106,910 per 10 grams, contrary to declining prices in international markets.

The precious commodity closed at Rs124,500 per tola and Rs106,739 per 10 grams on Monday.

In the international market, gold eased ahead of a Federal Reserve meeting that investors will be watching for an update on the pace at which the US central bank plans to wind down its pandemic stimulus measures.

The yellow metal recorded a meagre decrease of $2 per ounce to close at $1,785.

"The strong US dollar and rising US real interest rates on declining inflation expectations, as gauged by break-even inflation rates, are the factors keeping gold below $1,800/oz," said UBS analyst Giovanni Staunovo.

"Market participants will closely track the upcoming Federal Open Market Committee meeting to see how the central bank reacts on elevated inflation, which will result in likely larger price moves."

Earlier, speaking to Geo.tv, a gold dealer had said that due to lack of purchasing power, there is no demand in the local market.

He had said that the price of gold in the local market is currently being determined keeping in view the rupee-dollar parity.

In the international market, gold recorded a slight increase of $3 per ounce to settle at $1,787 as the market focus pivoted to this week's Federal Reserve meeting to learn how quickly it plans to unwind economic support measures introduced in response to the coronavirus pandemic.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.

— With additional input from Reuters