Gold extends losses, prices drops by Rs100 per tola

• Gold rates in Pakistan record a decrease of Rs100 per tola.
• Prices of gold in Pakistan are around Rs1,000 below cost.
• Silver price remains stable at Rs1,450 per tola.

KARACHI: Gold edged lower on Friday as the rupee rebounded, with the yellow metal remaining under pressure from expectations that the global recovery phase will help stocks and currency stay firm.

The rates went down by Rs100 per tola to Rs124,200 and dropped by Rs86 per 10 grams to Rs106,481 compared to Thursday's prices.

According to rates issued by All Sindh Sarafa Association, gold prices clocked in at Rs124,300 per tola and Rs106,567 per 10 grams on Thursday (February 3).

The association determines local prices based on rupee-dollar parity and international rates. According to the market practice, local prices of gold usually go down on the rupee's appreciation against the US dollar and rising prices of commodities in the international market.

A firmer tone to economic data and strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency.

The international gold price rose by $8 per ounce to $1,811.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs1,000 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,450 per tola and Rs1,243.14 per 10 gram today.