Gold resumes downward trend in line with global market

• Gold price settles at Rs154,700 per tola.
• In global market, price of yellow metal declines by $5 per ounce.
• Silver prices in domestic market remain unchanged.

KARACHI: Gold resumed its downtrend in Pakistan in line with the fluctuation in the international market.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of precious metal declined by Rs400 per tola and Rs343 per 10 grams to settle at Rs154,700 and Rs132,630 respectively.

In the international market, the price of yellow metal declined by $5 per ounce settling at $1,669 as a pullback in the dollar helped bullion to counter pressure from elevated US bond yields and hawkish remarks on future rate hikes from the Federal Reserve.

The Fed hiked interest rates by 75 basis points on Wednesday for a third consecutive time and signaled more increases are to come to tame soaring inflation.

Rising rates dull bullion’s appeal since it yields no interest. Gold prices have fallen nearly 20% since scaling above the key $2,000 per ounce mark in March.

Gold rates in Pakistan are around Rs2,000 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.