Gold pulls back as dollar strengthens in international market

• Bullion rates in Pakistan record a decrease of Rs400 per tola to close at Rs112,000.
• The prices of gold in Pakistan are around Rs4,000 below cost compared to the gold rate in the Dubai market.
• Silver prices remain stable at Rs1,430 per tola and Rs1,226 per 10 gram on Tuesday.

KARACHI: Gold prices in Pakistan fell on Tuesday as a stronger dollar in the international market made bullion more expensive for holders of other currencies.

Gold was down Rs400 at Rs112,000 per tola and declined by Rs343 to Rs96,022 per 10-grams.

The rates of gold were Rs112,400 per tola and Rs96,365 per 10 grams on Monday.

Speaking to Geo.tv, AA Commodities Director Adnan Agar said: “As the US dollar has started to gain momentum against the world currencies gold prices have started declining.”

Shedding light on the overall gold market performance during the period of January to August, the analyst said that the safe-haven asset has lost its charm. “Investors are now attracted towards bitcoin as it has more fluctuations, consequently the return is immediate and more as compared to gold, which is now considered as an old-investment tool,” Agar added.

The analyst predicted the gold market to remain lacklustre for the next four months of the calendar year 2021. “Gold will trade in a range of $1,600-1,800 till December,” he stated.

The bullion expert further maintained that as the global economy is reopening and is moving towards a recovery phase there are expectations of an economic boom, “however, this boom will be unfavourable for the gold market because investors interest shifts towards the stock market during the boom period.”

International gold price fell by $12 per ounce to $1,812 on Tuesday.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs4,000 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,430 per tola and Rs1,226 per 10-gram on Tuesday.