Daily Times

Gold price in the country remained unchanged for the second straight session on Tuesday, as the price in the international markets extended its sideways move.

According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold remained unchanged at Rs214,300. Similarly, the price for 10 grams of 24-karat gold remained stable at Rs183,728. Following suit, the price for 10 grams of 22-karat gold remained unchanged at Rs168,416.

During the month of January, the price for one tola of 24-karat gold decreased by Rs4,500 to Rs215,500 from Rs220,000 amid a drop in international prices and the continuous strengthening of the Pakistani rupee. However, gold price in the country surged by Rs2,100 (-0.98 percent) per tola last week due to a rise in prices in the international markets due to geopolitical tensions.

On the other hand, gold futures in the international market as of 1235 hours GMT were available at $2,026.90 per ounce, showing an uptick of $7.40. Out of the $7.40 increase, +$1.55 was due to weakening of the US dollar and +$5.85 was due to predominant buyers, according to the Kitco Gold Index.

After an overnight dip, gold prices recovered strongly as geopolitical tensions increased safe-haven appeal. The recovery move in the gold price will be tested by the United States Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT. The consensus shows that price pressures are expected to have softened as the Federal Reserve (Fed) has been holding interest rates in the range of 5.25%-5.50% for longer.

Gold price reverses from a two-week low around $2,012 as geopolitical uncertainty improves appeal for safe-haven assets. The precious metal is expected to face volatility as the US CPI data is set to release.