The prices of gold in the country remained stable on Wednesday, with no change from the previous day. This stability comes despite an increase in international prices due to the weakness of the US dollar. The price for one tola of 24-karat gold stood at Rs 215,200, while 10 grams of 24-karat gold and 22-karat gold were priced at Rs 184,500 and Rs 169,124, respectively, according to the data provided by Karachi Sarafa Association.
The previous week saw a decrease in gold prices by Rs 2,150 (-0.99 percent) per tola, marking the third consecutive week of decline in the country. International gold futures were trading at $2,032.40 per ounce, showing a slight uptick of $3.50. This increase was attributed to a weakening US dollar (+$8.25) and predominant sellers (-$4.75) according to the Kitco Gold Index.
The rise in gold prices was influenced by a nearly one percent decrease in the benchmark 10-year US Treasury bond yield ahead of the US PMI data release. This led to some dip-buying near the $2,023-$2,022 area, with gold prices remaining within a familiar trading range below the $2,040-$2,042 supply zone.
Additional insight:
The stability in gold prices in the country despite the international uptick can be attributed to various factors including local demand, geopolitical tensions, and the overall economic outlook. The fluctuation in gold prices mirrors the broader economic and financial landscape, making it an important indicator for investors and consumers alike. As the US dollar continues to show weakness, gold remains a desirable asset due to its perceived value as a safe-haven investment. The upcoming US PMI data and geopolitical developments may continue to influence gold prices in the near term.
