Daily Times

Spot gold price remained on the downward slide due to a stronger US dollar and hit their lowest level in more than three months on Friday.

As of 1245 hours GMT, gold in the international market was available at $1,812.40 per ounce, shedding $9.10 (-0.50 percent). Out of the $9.10 per ounce decrease, -$0.35 was due to strengthening of the US dollar and -$8.75 was due to predominant sellers, according to Kitco Gold Index.

The price of 10 grams of 24-carat yellow metal in Pakistan, decreased to Rs112,800 after shedding Rs600. Gold price in the local market settled at Rs113,400 on Thursday last. A relatively lower decrease in the local gold prices was due to Pakistani rupee’s continuous depreciation against the US dollar during the day.

Spot gold (XAU/USD) prices continue to trade with a negative bias on the final trading day of the week. At current levels in the upper $1810s per troy ounce, gold looks on course to post a weekly loss of around 3.5 percent, which would mark a fourth successive week in the red and gold’s worst weekly performance since June 2021.

The main driver of gold weakness this week has been the strength of the US dollar, with the Dollar Index looking on course to close out the week close to multi-decade highs in the upper 104.00s. A stronger US dollar makes USD-denominated commodities like gold more expensive for international buyers.

A relief rally in the global equity markets dented demand for traditional safe-haven assets, which was reinforced by a solid rebound in the US Treasury bond yields. Apart from the risk-on impulse, the prospects for a more aggressive policy tightening by the Federal Reserve held back traders from placing bullish bets around the non-yielding gold. This warrants some caution before confirming a near-term bottom.