How did Pakistan's gold perform on the last day of 2021?

• The precious commodity loses Rs100 per tola.
• Price per tola settles at Rs126,000 per tola.
• In 2021, the price of gold records a gain of Rs12,000 per tola.

KARACHI: The price of gold in Pakistan closed the last day of 2021 with a meagre loss of Rs100 per tola contrary to an increase in the international market.

The precious commodity lost Rs100 per tola and Rs85 per 10 grams — the exact same gains recorded a day earlier — to settle at Rs126,000 per tola and Rs108,025 per 10 grams, respectively.

In 2021, the price of gold recorded an overall gain of Rs12,000 per tola compared to last year's gain of Rs25,600.

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

Gold tips towards the first fall in three years

Gold was heading for its first drop in three years on Friday, with its safe-haven appeal diminished by a global economic recovery, and as major central banks prepared to raise interest rates to contain inflation.

Heading into 2022, while concerns about the effect of the Omicron variant could support gold prices, higher Treasury yields might tarnish the metal's appeal, said Han Tan, the chief market analyst at Exinity.

"Gold could see several catalysts for substantial gains next year, be it a US Federal Reserve policy mistake, stubbornly elevated inflation, or even a spike in geopolitical tensions."

Spot gold rose 0.2% to $1,816.51 per ounce. US gold futures rose 0.3% to $1,819.70.

Year-end risk hedging has pushed gold higher overnight, with resistance at $1,820, said Jeffery Halley, a senior market analyst at OANDA.

— With additional input from Reuters