Gold snaps losing streak, rises by Rs500 per tola

• Bullion price settles at Rs117,800 per tola in the local market.
• A gold dealer says that precious commodity will gain momentum in the near term and will scale to new peaks.
• Silver prices in the domestic market remained unchanged at Rs1,440 per tola and Rs1,234.56 per 10 gram.

KARACHI: Gold price in Pakistan recorded an increase of Rs500 on Monday, as it snapped its four-day losing streak.

Gold was up Rs500 at Rs117,800 per tola and increased by Rs429 to Rs100,995 per 10 grams. The rates of gold were Rs117,300 per tola and Rs100,566 per 10 grams on Saturday.

Cumulatively, the precious commodity has lost around Rs14,700 during the period of October 27-30.

Speaking to Geo.tv, a gold dealer said that the precious commodity will gain momentum in the near term and will scale to new peaks.

Shedding light on the demand in the domestic market, the dealer said that despite a massive plunge of Rs14,000, the demand in the local market remained dismal due to a lack of purchasing power.

According to All Sindh Saraf Jewellers Association (ASSJA), gold recorded a meagre increase of $1 per ounce to around $1,784 in the international market ahead of a key Federal Reserve meeting this week, where the focus is on the central bank’s plan for tapering its pandemic stimulus measures.

Analysts believe that gold has been range-bound for nearly five months. “We need some fresh air coming into markets and this week’s Fed meeting could be such an event,” said Ole Hansen, head of the commodity strategy at Saxo Bank in Copenhagen.

“We already are seeing the market's pricing in a rate hike around May or June next year, which is almost a year earlier than what the market was expecting a few months ago, and that has been the latest challenge for gold.”

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

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,440 per tola and Rs1,234.56 per 10 gram on Monday.