Gold rebounds as rupee pulls back

• Bullion rates in Pakistan record an increase of Rs400 per tola to close at Rs112,900.
• Silver prices in the domestic market remained unchanged at Rs1,380 per tola.
• International gold prices were under pressure on Monday, hurt by a stronger dollar and concerns regarding US Federal Reserve.

KARACHI: Gold prices in Pakistan recorded an increase of Rs400 on Monday, as it gained respite from a retreat in the rupee following a slide to an all-time low during the last week.

Gold was up Rs400 at Rs112,900 per tola and increased by Rs343 to Rs96,794 per 10 grams. The rates of gold were Rs112,500 per tola and Rs96,451 per 10 grams on Saturday.

However, it is pertinent to mention that gold rates in Pakistan are around Rs3,000 below the cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,380 per tola and Rs1,183 per 10 gram on Monday.

Bullion prices in global markets

Gold prices were under pressure on Monday, hurt by a stronger dollar and concerns the US Federal Reserve might hint at when it intends to begin tapering its asset purchases in its upcoming meeting.

Spot gold was little changed at $1,755.84 per ounce, having earlier touched its lowest level since August 12 at $1,741.86. US gold futures rose 0.2% to $1,755.00.

The Federal Reserve’s keenly awaited policy meeting begins on Tuesday.

“The (upcoming) Fed meeting is casting its shadow via a firm dollar because a majority of market participants expect the Fed to signal tapering sometime later this year, and that’s keeping gold in check,” said Commerzbank analyst Daniel Briesemann.

Denting gold’s appeal to other currency holders, the US dollar index hit a near one-month high.

— With additional input from Reuters