ISLAMABAD: After a sharp increase of over Rs 4000, the per tola price of 24 karats of gold on Friday turned down almost to the same level as it witnessed a decrease of Rs.4,200 and was available in the market at Rs.228,200 on Friday against its sale at Rs.232,400 on Thursday.
This major oscillation was due to the recent US Federal Fund Rate followed by US Federal Reserve Chairman Jerome Powell press conference about the ongoing US economy, monetary policy decision, inflation and no change in the interest rate. It took the Us dollar a bit down and gold up from $2150 to $2212 per ounce, affecting other markets in the world. Powel would talk again today.
Meanwhile on Friday, the rates for the 10 grams of 24 karats of the precious metal also observed a fall by Rs.3,600 to close at Rs.195,645 from the last day price of Rs.199,245 while the price of 10 grams of 22 karats of the yellow plate decreased to Rs.179,341 from the Thursday’s rate of Rs.182,642.
Like the yellow plate, the rates for the per tola white plate (silver) also decreased by Rs.20 to settle at Rs2,580 whereas that of ten grams of silver went down by Rs.17.15 to close at 2,211.93.
Gold Price in International Market
Like the local bullion market, the price for the yellow metal in the international market also witnessed a decline by $40 to reach at $2,285 per punce from the previous but record figure of $2,225, per ounce.
One of the key major reason of recent increase (last two weeks) in the price of gold in the international market is the continues investment from Chinse investors in the gold market as due to shrinking of real estate and construction sector they turned to invest in safe heaven.
During last couple of days gold price increased by more than $90 per ounce. The Price for the precious metal in the local bullion market mostly affected by the price in the international market.
Crunch Moment for Gold Price
As discussed in the previous report, the price of the precious metal’s subtle connection with Powel speech and it took the price from $2150 to above $2200 in one day. However, the following day gold price came down to around $2170. during the last couple of days including the highest level of $2196 due to different reasons including the inflow of fresh investment in the yellow metal.
Interestingly Fed Chair Powel would speak again today (Friday) where another volatility in oil, gold and other commodities is expected.
