KARACHI, Oct 11(ABC): Gold rose on Tuesday, clawing back some lost ground after receding losses in two sessions in as clarity on the monetary policy stance helped the metal rebound.
The price of yellow metal rose Rs1,750 per tola and Rs1,458 per 10 grams to settle at Rs144,850 and Rs124,143, data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.
Cumulatively, the precious commodity had lost around Rs1,950 per tola in the previous two sessions. Meanwhile, it lost Rs2,700, or 1.84% per tola during the week that ended on October 8.
The State Bank of Pakistan (SBP) decided to keep the monetary policy rate unchanged at 15%, which gave investors a ray of hope as gold.
Investors were concerned that the central bank might increase the rates keeping in view that the precious commodity is highly sensitive to rising interest rates, as these increase the opportunity cost of holding non-yielding bullion while boosting the currency, in which it is priced.
In the international market, the price of yellow metal declined by $9 wobbling near a one-week low, with price moves restrained as investors sat tight before a key US inflation report that is expected to reinforce the Federal Reserve’s bullish stance. The price settled at $1,668.
Gold rates in Pakistan are around Rs3,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10 grams.