Tuesday Sep 20, 2022
KARACHI: Gold recovered some of its recent losses on Tuesday, despite a firmer dollar and increasing fears about an oversized rate hike by the US Federal Reserve.
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the precious metal rose Rs400 per tola and Rs343 per 10 grams to settle at Rs155,100 and Rs132,973 respectively.
The local market is expected to see some choppy, sideways trade this week. Speaking to Geo.tv, AA Commodities Director Adnan Agar said that the prices may decline further in the local market in line with the international prices; however, rupee depreciation will arrest some of the losses
Moreover, rising political and economic risks are doing little to entice haven buying, with the US dollar still the asset of choice.
In the international market, the price of yellow metal rose by $7 per ounce; however, it failed to cross the psychological barrier of $1,700. The price settled at $1,669 as investors braced for aggressive interest rate hikes by the US Federal Reserve and other central banks this week in an effort to tame high inflation.
Gold rates in Pakistan are around Rs1,700 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10 grams.