The gold market witnessed another price swing at Rs80,900 per tola (11.66 grams) on Wednesday, following a surge in prices of the precious metal in international market, ahead of US policy rate adjustment.
All Sindh Saraf and Jewellers Association (ASSJA) announced the increase after gold price shot up approximately $15 to $1,410 per ounce in the international market.
The market opened at Rs80,300 per tola, however, at close it had reached Rs80,900, said an official at ASSJA.
“Prices of bullion in the international market have increased to an extent that it has impacted the local market,” Rays Commodities COO Adnan Agar told The Express Tribune.
Gold was being traded at $1,280 per ounce before Eid, which reached a high of $1,440 after Eid, he said, adding that major impact on local market comes from international prices.
The prediction of 25-basis-point cut in the US interest rate has also lured sellers to increase gold prices, Agar said adding the US had been tightening its monetary policy in the last one year, but now the prediction is to lower it. Fed chairman also indicated at the chances of cutting interest rate, which invited increase in gold prices.