Monday Nov 22, 2021
KARACHI: The price of gold in Pakistan extended losses on Monday as the rupee strengthened against the US dollar on the back of the International Monetary Fund (IMF) programme.
Gold price in the local bullion market fell by Rs400 per tola and Rs342 per 10 grams to settle at Rs123,400 per tola and Rs105,796 per 10 grams.
On Saturday, the yellow metal closed at Rs123,800 per tola and Rs106,138 per 10 grams.
Last week, the precious commodity lost around Rs4,300 per tola or 3.35%.
In the international market, gold prices hovered near a two-week low, pressured by a firmer dollar and expectations that the US's Federal Reserve might accelerate the pace of policy tightening as inflation rises.
The bullion price settled at $1,839 with a decline of $7.
"Gold has support from a surge in inflation...but the market is slightly worried about how the Fed will deal with it and if they will step up their efforts, and that could be a short term drag on gold," said Saxo Bank analyst Ole Hansen.
A break below $1,830 could open gold up to the risk of a return to $1,800, Hansen added.
It is pertinent to mention that gold rates in Pakistan are around Rs3,000 below cost compared to the gold rate in the Dubai market.
On the contrary, the price of silver in the domestic market recorded an increase of Rs20 per tola and Rs17.15 per 10-grams to settle at Rs1,460 per tola and Rs1,251.71 per 10 grams today.
— With additional input from Reuters