At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
Gold rose more than 1% on Tuesday, recovering from a near one-week low hit in the previous session, as hopes of a resolution to the war in Iran weighed on the dollar and eased inflation concerns as oil prices eased.
Spot gold was up 1.1% at $4,788.76 per ounce as of 0921 GMT. US gold futures for June delivery rose 1% to $4,812.80.
Following international market trends, gold prices increased in Pakistan after a two-day break, while silver also became more expensive.
Following the upward trend in global prices, 24-karat gold in local bullion markets also increased by Rs4,600 per tola, reaching Rs499,962 per tola on the second trading day of the week.
Similarly, the price of gold per 10 grams rose by Rs3,943, taking the new rate to Rs429,636.
Silver prices also recorded an increase in the local market. The price per tola rose by Rs326 to reach Rs8,260, while the price of 10 grams increased by Rs279 to Rs7,081.
Also Read: Gold falls Rs1,600 tracking global decline
Bullion fell to a near one-week low in the previous session as the US military prepared to begin a blockade of Iran’s ports, angering Tehran and putting a fragile two-week ceasefire at risk.
Negotiating teams from the US and Iran could return to Islamabad later this week, five sources said on Tuesday, days after the highest-level talks between the two countries in decades ended without a breakthrough.
“The focus remains firmly on developments in the Middle East and the prospects for a resolution. In my view, a de-escalation could ultimately prove supportive for precious metals, particularly if it weighs on the dollar,” said Ole Hansen, head of commodity strategy at Saxo Bank.
The US dollar fell to its lowest level in over a month, making dollar-denominated gold more affordable for holders of other currencies.
Oil prices fell in Asian trade, as concerns about supply risks were allayed by signs of possible talks to end the US-Iran war.
Crude prices have risen about 40% since the onset of the Middle East conflict, and have stoked inflation concerns. While bullion is seen as a hedge against inflation and geopolitical uncertainty, the non-yielding metal’s appeal fades in a high-interest-rate environment.
Traders currently see a 31% chance of a 25-basis-point US rate cut this year, up from 27% the previous day. Before the war, there were expectations of two cuts for this year.
“In the near term, gold remains range-bound with no clear breakout signal. However, the longer the current consolidation persists, the greater the likelihood that the eventual move, at this stage, leans to the upside,” Hansen added.
Among other metals, spot silver rose 3.2% to $77.98 per ounce, platinum gained 0.7% to $2,084.90, and palladium was up 0.6% at $1,583.82.
