Friday Jan 07 2022

Gold extends losses as rupee rebounds

— Reuters/File
— Reuters/File

  • Gold price falls by Rs50 per tola to close at Rs126,100 per tola.
  • Silver price records a decrease of Rs10 per tola.
  • International gold price drops by $10 per ounce to $1,791.

KARACHI: Gold edged lower on Friday as the rupee rebounded, with the yellow metal remaining under pressure from expectations that the global recovery phase will help stocks and currency stay firm.

The rates went down by Rs50 per tola to Rs126,100 per tola and dropped by Rs43 per 10 grams to Rs108,110 per 10 grams compared to Thursday's prices.

According to rates issued by All Sindh Sarafa Association, gold prices clocked in at Rs126,150 per tola and Rs108,153 per 10 grams on Thursday (December 6).

The association determines local prices based on rupee-dollar parity and international rates. According to the market practice, local prices of gold usually go down on the rupee's appreciation against the US dollar and rising prices of commodities in the international market.

A strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency.

Meanwhile, the international gold price fell by $10 per ounce to $1,791.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs1,600 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market recorded a decrease of Rs10 per tola and Rs8.57 per 10 grams to settle at Rs1,450 per tola and Rs1,243.14 per 10 grams today.