Gold rates in Pakistan continued their two-day gaining streak on Saturday after the international market also managed to appreciate on a weaker dollar.
According to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) appreciated by Rs1,300 per tola and Rs1,115 per 10 grams to settle at Rs222,800 and Rs191,016, respectively.
Meanwhile, the price of the yellow metal increased by $10 to settle at $1,942 per ounce in the international market today.
Gold prices rose on Friday internationally after a slightly weaker-than-expected US jobs report pushed the dollar and Treasury yields lower, offering some respite to bullion which was still on track for its worst week in six.
“The jobs report has allowed the market to propose that the Federal Reserve is not as likely to raise interest rates. As a result, we’ve seen bond yields drop along with the dollar and that is certainly supporting the price of gold,” said David Meger, director of metals trading at High Ridge Futures.
Following the data, the dollar fell 0.5% against its rivals, making gold less expensive for other currency holders. Benchmark US 10-year yields retreated from a nine-month high.
Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion.
“The data was bit weaker-than-expected, but not dramatically so, which is why a small slight rise in prices this morning … Any dips (in gold) over the course of the next couple weeks, is likely going to be a buying opportunity,” Meger said.
Data shared by the association also showed that silver prices remained unchanged to settle at Rs2,750 per tola and Rs2,357.68 per 10 grams, respectively.
