Gold prices in Pakistani markets surged on Thursday after international rates regained last week’s bullish momentum after the US Dollar fell in global markets.
On Thursday, gold prices in the domestic market rose by roughly Rs. 1,100 per tola, with average rates in the local market going up to Rs. 181,100 per tola. The US dollar’s drop worldwide was also one of the factors behind the recovery today.
The 10-gram gold price also jumped by Rs. 943 to Rs. 155,264.
Gold prices rose more than 1 percent in the last 24 hours, hovering near the $1,900 per ounce pivot, as data showing signs of cooling inflation in the United States boosted bets on the Federal Reserve slowing rate hikes.
Earlier today (Friday), spot gold had risen 1.1 percent to $1,896.30 per ounce in international markets. It had previously reached $1,901.4, its highest level since May. More importantly, the dollar fell 0.8 percent to its lowest level since early June, making gold more appealing to holders of other currencies.
In local markets, spot silver remained unchanged at Rs. 2,070 pr tola but increased 1.8 percent to $23.85 per ounce at western counters, while platinum also increased worldwide 0.4 percent to $1,075.25, and palladium jumped 0.4 percent to $1,780.46.
The easing of real yields and the weakening of the dollar have boosted gold, as the two major headwinds for gold through 2022 (inflation, and interest rate hikes) are beginning to fade. Interestingly, some have even suggested that there has been a massive movement of cash into the bullion market from people outside the industry as importers are buying gold to sell for dollars to support their businesses.
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