Gold price snaps losing streak

KARACHI: Gold jumped over Rs3,500 per tola on Thursday, snapping a three-day losing streak to trade above the key Rs195,000-per tola level as record high inflation once again shifted investors’ attention towards the precious commodity.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) increased by Rs3,800 per tola and Rs3,258 per 10 grams to settle at Rs196,000 and Rs168,038, respectively.
Gold is considered an inflation hedge, but is highly sensitive to rising interest rates, which increase the opportunity cost of holding the non-yielding bullion.
The data from the APSGJA also showed that local gold is Rs2,000 “undercost” compared to the Dubai bullion market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,100 per tola and Rs1,800.41 per 10 grams, respectively.
In the international market. the gold price remained steady at $1,839 after meagre gain of $2 per ounce as markets awaited next week’s US inflation data that could influence the Federal Reserve’s monetary policy trajectory.
“Gold is seeing a ‘dead cat bounce’ or a temporary recovery after a significant decline in some bargain hunting. Recession fears are lending some support to the gold market as is a modest correction in the dollar,” independent analyst Ross Norman said.
For now, the path of least resistance is lower and bears have the upper hand, Norman added.
Gold prices have fallen 4.7% this month, on track for the biggest monthly drop since June 2021 if losses hold. –Agencies