Daily Times

Gold price fell over one percent on Tuesday to its lowest level since early March despite a sharp pullback in the US Treasury bond yields and the dollar. As of 1350 hours GMT, gold in the international market was available at $1,922.20 per ounce, shedding $29.10. Out of a $29.10 per ounce decrease, +$6.30 was due to the dollar’s weakness and -$35.40 was due to predominant sellers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, meanwhile, fell to Rs110,600 with a decrease of Rs2,700. Gold in the local market was available at Rs113,300 on Monday last. Pakistani rupee depreciated 0.13 percent against the US dollar during the day, which trimmed the overall decrease in local gold prices.

The US Federal Reserve earlier hinted at the possibility of a 25 basis points rate hike in the coming week, as the FOMC started its meeting in this regard on Tuesday. The recent monster rally in commodity prices following Russia’s invasion of Ukraine has raised worries about a major inflationary shock and is fuelling hawkish Fed expectations.

Gold marked the fourth day of a negative move in the previous five sessions amid hopes for a diplomatic solution of the Russia-Ukraine conflict.