F.P. Report
KARACHI: Gold prices are once again on the rise at the global and local levels.
According to local bullion markets, 24-carat gold per tola has increased by Rs3,100 to Rs354,100, while the price of 10 grams of gold increased by Rs2,658 to Rs3,357.
Traders further said that in the international market, gold per ounce increased by $31 to $3,357.
On Friday, the 24-carat gold per tola had increased by Rs3,500 to Rs351,000, while the price of 10 grams of gold had increased by Rs3,000 to Rs 3,925.
According to the news agency Reuters, the Gold prices rose on Wednesday to their highest levels in a week as the dollar weakened and investors sought safety amid U.S. fiscal uncertainty, with Congress debating a sweeping tax bill.
Spot gold was up 0.2% at $3,293.98 an ounce, as of 0209 GMT, after hitting its highest level since May 12 earlier in the session.
U.S. gold futures gained 0.3% to $3,295.80.
The dollar (.DXY) retreated to its lowest level since May 8, making greenback-priced gold cheaper for overseas currency holders.
“The general dollar index lost more than a full point in the last 24 hours as the Moody’s downgrade, plus skepticism about trumps tax bill continues to undermine the dollar,” said Marex analyst Edward Meir.
Trump on Tuesday pressed his fellow Republicans in the U.S. Congress to unite behind a sweeping tax-cut bill, but apparently failed to convince a handful of holdouts who could still block a package that encompasses much of his domestic agenda.
Gold, traditionally considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment.
