Gold prices go up in domestic, international markets
KARACHI: The per tola gold price on Monday registered an increase of Rs350 to Rs110,700 in the domestic market, ARY News reported.
Sharing the price of the precious metal, All Pakistan Jewelers Manufacturers Association Chairman Muhammad Arshad said that the rate of 10 grams of gold increased by Rs343 to Rs94,907 today.
Moreover, in the international market, gold rose more than one percent to a near one-week high on Monday, despite a jump in U.S. Treasury yields, as expectations for rising inflation triggered equity valuation concerns and drove investors towards the safe-haven metal.
According to a Reuters report, the Spot gold was up 1.3 percent at US$1,805.45 an ounce, having hit its highest since February 16 earlier in the session. US gold futures gained 1.6% to $1,805.10.
“We are seeing investment flows into gold as market participants grow more anxious about rising real rates that can impact equity valuations,” said TD Securities commodity strategist Daniel Ghali, pointing to rising Treasury yields.
US benchmark 10-year treasury yields hit a near one-year high, increasing the opportunity cost of holding non-yielding bullion.
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However, rising real yields and inflation concerns made equity valuations look more stretched in comparison and prompted investors towards safe-haven assets like gold, which is widely viewed as a hedge against inflation.
“The dollar at the moment is low and that is supporting. Also, the real reason for the gold prices to increase in the longer term is the chances of inflation picking up,” Commerzbank analyst Eugen Weinberg said.
Besides this, Silver rose 1.7 percent to US$27.68 an ounce, while platinum eased 0.4 percent to US$1,269.18.