The gold price in Pakistan extended gains on Monday.
The price of the precious commodity rose by Rs200 per tola and Rs171 per 10 grams to settle at Rs133,000 and Rs114,026, respectively.
Earlier, the precious commodity closed at Rs132,800 per tola and Rs113,855 per 10 grams. Cumulatively, the yellow metal has gained Rs1,000 per tola during the last three sessions. Moreover, the demand for gold is picking up pace due to the ongoing wedding season. It is worth mentioning that gold rates in Pakistan are around Rs1,500 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,500 per tola and Rs1,286 per 10 grams today.
In the international market, the gold prices retreated 1 per cent as a firmer dollar and elevated US Treasury yields weighed on the appeal of non-yielding bullion.
Spot gold was down 1% at $1,864.43 per ounce. US gold futures also fell 1% to $1,873.20. The dollar surged to a two-decade high on growing concerns over slowing economic growth and US interest rate hikes, making gold more expensive for holders of other currencies.
“Gold is suffering mostly due to the strength of the US dollar,” said Carlo Alberto De Casa, external market analyst at Kinesis, adding that a fall below the key support level of $1,850 would be a negative signal.
While gold is seen as a safe store of value during times of political and economic crises, it is highly sensitive to rising US interest rates and bond yields, which raise the opportunity cost of holding bullion.