Gold retreats in line with international market

• Domestic gold prices settle at Rs113,300 per tola and Rs97,136 per 10 grams on Friday.
• Bullion prices in the international market record a decline of $19 per ounce to settle at $1,753.
• Silver prices remain unchanged at Rs1,400 per tola and Rs1,200.21 per 10 grams.

KARACHI: The per tola gold price in Pakistan registered a decrease of Rs200 per tola and Rs172 per 10 grams to settle at Rs113,300 per tola and Rs97,136 per 10 grams on Friday.

Bullion prices in the international market recorded a decline of $19 per ounce to settle at $1,753 as gold prices were set for a third weekly loss. A rally in world stock markets rallied as worries about contagion from cash-strapped China Evergrande faded, denting gold’s safe-haven appeal.

Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had 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 first eight months of the calendar year, the analyst had said that the safe-haven asset has lost its charm, referring to gold as "an old-investment tool".

Meanwhile, the demand for the safe-haven asset is picking up pace despite an increase in prices.

According to local dealers, the demand for the yellow metal is slightly improving as the holy month of Safar is coming to an end and the wedding season is drawing close.

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

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,400 per tola and Rs1,200.21 per 10 grams.