Daily Times

Spot gold price regained some positive traction on Tuesday amid a softer tone around the US Treasury bond yields and concerns about softening global growth.

As of 1255 hours GMT, gold in the international market was available at $1,862.80 per ounce, gaining $8.70 (+0.47 percent). Out of the $8.70 per ounce increase, +$1.10 was due to weakening of the US dollar and +$7.60 was due to predominant buyers, according to Kitco Gold Index.

However, the price of 10 grams of 24-carat yellow metal in Pakistan, decreased to Rs113,000 after shedding Rs100. Gold price in the local market settled at Rs113,100 on Monday last. A decrease in the local gold prices was due to overnight decrease in the gold prices globally when the local market was closed. However, the Pakistani rupee’s depreciation against the US dollar during the day trimmed the overall decrease in the local prices. A combination of factors held back gold bulls from placing aggressive bets and kept a lid on any further gains for the prices. A softer tone around the US Treasury bond yields kept the US dollar bulls on the defensive, which, in turn, was seen as a key factor that offered some support to the dollar-denominated commodity. Apart from this, concerns about softening global growth and a possible recession further underpinned the safe-haven gold. After a turbulent last week, dominated by the central banks, global growth fears are back to the fore amid extended Chinese Covid-19 curbs and fears over interest rate hikes. Earlier, gold prices decreased for the third straight week by 0.72 percent on Friday last amid a worsening demand outlook due to strong US dollar and firm bond yields. Gold is considered a hedge against inflation and geopolitical risks.