PESHAWAR: The price of gold has recorded another increase in local and global market, largely due to the appreciation of the US dollar and the decline in oil prices.
The conflicting signals on possible talks between the US and Iran and the uncertain geopolitical situation have led to an increase in demand and prices of gold and silver in global and local markets.As the price of gold per ounce in the international bullion market suddenly increased by $100 to $4,155, the price of gold per tola in the local gold markets also increased by Rs10,000 to Rs437,936 on Wednesday. Similarly, the price of gold per 10 grams at the local level also increased by Rs8,573 to Rs375,459.
Meanwhile, as the price of silver per ounce in the global market increased by $2.73 to $61.45, the price of silver per tola in the local bullion markets also increased by Rs273 to Rs6,624 and the price of silver per 10 grams increased by Rs235 to Rs5,679
Spot gold prices rose 2.4 percent to $4,162.83 per ounce, a two-week high, while US gold futures rose 1 percent to $4,191.90 per ounce. Other precious metals also saw increases. Silver prices rose 2 percent to $60.70 per ounce, platinum rose 1 percent to $1,751.03, while palladium remained at $1,360.25 per ounce after a 0.5 percent increase.
According to Calvin Wong, senior market analyst at OANDA, “Gold’s correlation with oil continues to be strong as oil prices have a significant impact on the global economy and inflationary pressures. He said that if there is a clear path to further easing in the ongoing tensions in the Middle East, gold prices could rise further. On the other hand, oil prices also saw a further decline, continuing after a sharp decline in the past two sessions. Weak oil prices could reduce inflation concerns, which usually affect the prospects of interest rate hikes.
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