Gold price rises on third day

A weaker rupee caused an increase in gold prices on Tuesday, approaching a one-week high the previous week, as investors anticipated economic developments that might affect the market’s course.

The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) data indicates that the price of gold (24 carats) increased by Rs 500 per tola and Rs 429 per 10 grams to settle at Rs 197,000 and Rs 168,896.

The value of the precious metal increased as the Pakistani rupee appreciated 0.24%, settling at 262.51 on the interbank market.

Although bargain hunters profited from recent declines, the outlook for the precious metal was still bleak due to expectations of further rupee strengthening against the dollar, which could bolster sentiment on the currency market.

Over the past three sessions, the price of yellow metal increased by Rs3,800 per tola.

During this time, the cost of silver on the domestic market increased by Rs20 per tola and Rs17.14 per 10 grams, respectively, to reach Rs2,150 per tola and Rs1,843.27 per 10 grams.

While traders awaited US economic data to determine the Federal Reserve’s interest rate strategy, the price of gold dropped $12 per ounce to settle at $1,832 on the international market due to a strengthening dollar.

The dollar index was close to its highest level in six weeks, increasing the price of gold for buyers holding other currencies.

To the dismay of bullion bulls, if the US economy continues to resist the Fed’s rate hikes, that could lead to a higher peak for US rates. “.

This week’s main events include the release of the minutes from the Federal Open Market Committee’s January meeting on Wednesday, the release of US GDP data on Thursday, and the release of the core PCE price index on Friday.

Early in the month, gold prices reached their highest level since April 2022 at $1,959.60 but have since lost about $130 as US data showed signs of a robust economy.