Gold rings in 2022 with Rs200 per tola rise

• Cumulatively, gold gained Rs100 per tola in the outgoing week.
• In 2021, price of gold recorded an overall gain of Rs12,000 per tola.
• In the international market, gold was set for its worst year since 2015.

KARACHI: Gold price in Pakistan rose by Rs200 per tola on the first day of 2022 in line with an increase in the international market.

The precious commodity gained Rs200 per tola and Rs171 per 10 grams to settle at Rs126,200 per tola and Rs108,196 per 10 grams, respectively.

Cumulatively, the precious commodity gained Rs100 per tola in the outgoing week.

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 set for worst year since 2015

In the international market, gold was set for its worst year since 2015 as a global economic recovery caused safe-haven flows into the metal to ease and as central banks prepared to raise interest rates to contain inflation.

Spot gold rose 0.1% in thin trading to $1,817.57 per ounce, hovering close to a one-month high. US gold futures rose 0.3% to $1,818.90.

"Year-end risk hedging has pushed gold higher overnight and is keeping gold supported in Asia, despite a modest US dollar rally overnight. Gold is now just below resistance at $1,820," said Jeffery Halley, a senior market analyst at OANDA.

A stronger dollar makes bullion more expensive for buyers holding other currencies.

Gold prices have declined more than 4% so far this year after rising 48% over the previous two years, as the global economic recovery reduced demand for the safe-haven metal.

This year gold traded between $1,676 and $1,959 an ounce, following its best annual performance in a decade last year, which also saw the metal touching an all-time high of about $2,072.50.

— With additional input from Reuters