Gold extends slide on rupee appreciation, political stability

• Gold price drops Rs900 per tola to settle at Rs131,400.
• Investors are once again relocating their stocks from safe-have assets to riskier assets.
• Silver prices in the domestic market remain unchanged.

KARACHI: Amid the recovery in other commodity markets, gold price in Pakistan dropped Rs900 per tola to settle at Rs131,400 in Pakistan Monday.

Meanwhile, the precious commodity lost Rs772 per 10-gram to close at Rs112,654.

Investors, who were relocating their capital to gold amid political uncertainties and rising concerns regarding economic stability, divested their investment from the save-haven asset.

The correction in gold was overdue since long as political uncertainty had caused panic everywhere and people were relocating their capital to buying gold, as some regulations had made it difficult to buy dollars for everyone.

On April 7, gold spiked to a new peak (Rs134,300 per tola) driven by the rupee devaluation.

In the international market, the price of yellow metal recorded a meagre gain of $5 per ounce to settle at $1,953.

Gold rates in Pakistan are around Rs5,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,520 and Rs1,303.15 today.