Gold price plunges by Rs2,400 per tola in Pakistan

• Bullion prices in the local market decrease by Rs2,400 per tola and Rs2,058 per 10 grams.
• Cumulatively, the precious commodity lost around Rs1,000 during the outgoing week.
• It drops by $26 per ounce to around $1,787 in the international market.

KARACHI: Gold once again lost its shine, as it declined by over Rs2,000 per tola in Pakistan on Saturday in line with global markets.

Bullion prices in the local market recorded a decrease of Rs2,400 per tola and Rs2,058 per 10 grams to settle at Rs122,800 per tola and Rs105,281 per 10 grams.

Cumulatively, the precious commodity lost around Rs1,000 during the outgoing week.

It receded $26 per ounce to around $1,787 in the international market, according to All Sindh Saraf Jewellers Association (ASSJA).

Globally, gold was still headed for its worst week since mid June, down 2.9% so far, pressured by expectations that the US Federal Reserve could hasten interest rate rises, raising the opportunity cost of holding non-interest-bearing bullion.

Authorities globally reacted with alarm to the discovery of a new virus variant, with the EU and Britain among those tightening border controls as researchers sought to establish if the mutation was vaccine-resistant, triggering a selloff across markets that seeped into oil and other precious metals.

But after the rally due to the bullion's safe-haven appeal, the overall bearish turn in commodities eventually claimed gold as well, said Jim Wyckoff, senior analyst at Kitco Metals, adding the market reaction was probably overblown.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.

— With additional input from Reuters