KARACHI: Gold prices increased by Rs600 to Rs88,100 per tola in the local market on Thursday.
The rate of 10 grams gold saw an increase of Rs514 and was traded at Rs75,531.
The yellow metal also rose in the international market ahead of a European Central Bank meeting, supported by lingering concerns around global growth, while an uptick in financial markets driven by hopes of a thaw in U.S.-China trade tensions kept the metal’s gains in check, Reuters adds.
Spot gold was up 0.4% at $1,503.04 per ounce as of 1108 GMT. U.S. gold futures rose 0.5% to $1,510.06.
“We have the ECB meeting coming up and there are growing concerns they may not be able to deliver what the market is looking for in terms of economic boost; in that case it will provide a bid to gold,” Saxo Bank commodity strategist Ole Hansen said.
“The underlying demand continues to remain strong for gold, there is a sense in the market that traders don’t want to miss out on any renewed rally. It does indicate that the buyers have been waiting and they’re worried about not catching the bus when it leaves the station.”
Investors are looking to the ECB meeting to see how far policymakers will go to support a flagging economy, given the risks posed by Britain’s planned exit from the European Union.
The ECB is set to announce its rate decision at 1145 GMT, followed by a news conference by the central bank’s President Mario Draghi at 1230 GMT.
