Gold price surges by Rs7,100 per tola in April

Gold price in the country surged by Rs7,100 per tola in April following a surge in the price of the yellow metal in the international market.
According to the data provided by the Karachi Sarafa Association, the price for one tola of 24-karat gold increased to Rs241,900 from Rs234,800 during the month. It may be noted that the gold price hit an all-time high in Pakistan on April 20 when it reached Rs252,200. Earlier gold price per tola in Pakistan hit all-time highs of Rs251,900 on April 17, Rs247,300 on April 16 and Rs247,600 on April 9. The local market remained closed on Wednesday due to public holiday.
On the other hand, gold futures in the international market as of 1220 hours GMT on Wednesday, were available at $2,297.20 per ounce, showing an uptick of $11.30. Out of the $11.30 increase, +$0.20 was due to weakening of the US dollar and $11.10 was due to predominant buyers, according to the Kitco Gold Index.
Earlier in the day, gold price traded close to a more than three-week low around $2,285. The precious metal weakened as the US dollar and bond yields strengthened amid firm speculation that the Federal Reserve (Fed) will opt for maintaining a restrictive interest rate environment for a longer period due to inflation remaining persistently higher than expected in the first quarter of the year.
In this context, 10-year US Treasury yields moved higher to 4.69 percent. The US Dollar Index (DXY), which tracks the US dollar’s value against six major currencies and is negatively correlated to the gold price, jumped to a two-week high of around 106.50.
The US dollar remained on the backfoot last week after weak growth in Q1 Gross Domestic Product (GDP) raised concerns over the country’s economic outlook. However, it bounced back strongly on Tuesday after the US Bureau of Economic Analysis (BEA) reported strong Q1 Employment Cost Index numbers.