Monday Jan 10, 2022
KARACHI: The price of gold in the local market on Monday remained unchanged as the precious metal closed the day at Rs126,200 per tola and Rs108,196 per 10 grams.
The rates last recorded an increase of Rs100 per tola and Rs86 per 10 grams on Saturday.
Cumulatively, the yellow metal had lost Rs100 per tola in the local market during the week that ended on January 8.
However, it is pertinent to mention that the gold rates in Pakistan are around Rs1,500 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,450 per tola and Rs1,243.14 per 10 grams today.
Gold prices edged higher despite US 10-year Treasury yields hitting a two-year high, as traders hedged their positions against inflation and ongoing geopolitical risks.
Spot gold was up 0.3% at $1,800.76 per ounce, recovering slightly from Friday when it hit its lowest since December 16 US gold futures rose 0.2% to $1,800.30.
Gold is holding around the $1,800 area despite the rise in yields, showing that the market is looking at other factors such as the inflationary environment and geopolitical tensions, said Saxo Bank analyst Ole Hansen. read more
"The weakness in stocks has potentially also added some support to the precious metal market," Hansen said, adding that yields will nonetheless remain in focus this week, along with US CPI inflation data.
US core CPI is expected to have risen by an annual 5.4% in December, up from 4.9% in the prior month, which could stress the need for earlier-than-anticipated interest rate hikes by the Federal Reserve.
Gold is considered a hedge against higher inflation, but rising US interest rates increase the opportunity cost of holding non-yielding bullion.
— With additional input from Reuters