ISLAMABAD: The per tola price of 24 karat gold increased by Rs.450 and was sold at Rs.217,900 on Monday compared to its sale at Rs.217,450 on last trading day, ARY News reported.
The price of 10 grams of 24 karat gold also increased by Rs.386 to Rs.186,814 from Rs. 186,428 whereas the prices of 10 gram 22 karat gold went up to Rs.171,246 from Rs. 170,893 the All Sindh Sarafa Jewellers Association reported.
The price of per tola and ten-gram Silver remained stagnant at Rs.2,650 and 2,271.94 respectively. The price of gold in the international market increased by $7 to $2,075 from $.2,068, the Association reported.
Gold prices rose on Monday, holding above the $2,050 level on safe-haven appeal from elevated tensions in the Middle East and on renewed bets for an early rate cut by the U.S. Federal Reserve.
Spot gold was up 0.3% at $2,055.30 per ounce, as of 0830 GMT, after marking its biggest daily gain since Dec. 12 on Friday. U.S. gold futures rose 0.4% to $2,059.20.
The war between Israel and Hamas reached its 100th day as Israel continued its fierce offensive, while Houthi militia threatening response to U.S. air strikes on Yemen kept risks of escalations in the Middle East elevated.
“Gold is just trading as a proxy for front-end yields, which itself is a proxy for amped up expectations of rate cuts in the U.S.,” with the market now looking past the higher-than-expected CPI figures, said Kyle Rodda, a financial market analyst at Capital.com.
Data on Friday showed U.S. producer prices unexpectedly fell in December, sending 10-year Treasury yields sliding in response.
Overall, traders are betting on 166 basis points (bps) of Fed rate cuts this year, higher than Friday morning’s bets of 150 bps.
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