ISLAMABAD: Gold prices remained on the back foot on Monday due to expected interest rate hikes amid a rebound in the global economy.
As of 1300 hours GMT, gold in the international market was available at $1,791.70 per ounce, shedding $5.30. The price of 10 grams of yellow metal in Pakistan, meanwhile, went down to Rs101,700 after shedding Rs500. Gold in the local market closed at Rs102,200 per 10 grams last week.
According to experts, gold price remains at the mercy of the US Treasury bond yields and is struggling to find a clear directional bias. The US Treasury yields resume the rally triggered by the Fed rate hike frenzy, lifting the dollar alongside at gold’s expense. The dollar started the week with support as traders bet US inflation data and appearances from several Federal Reserve officials would bolster the case for higher interest rates.
The 10-year bond yield rose more than 15 percent last week and reached 1.766 percent. Treasury yields climbed all the week, pressuring the non-yielding yellow metal, following the release of minutes of the Federal Reserve meeting which indicated that the US central bank was ready to more aggressively pull back its policy support of the economy. – TLTP