Gold loses traction, price drops by Rs550 per tola
January 27, 2022
- Price of gold declines by Rs550 per tola and Rs472 per 10 grams.
- Silver prices in the domestic market remain unchanged.
- Gold rates in Pakistan are around Rs2,000 below cost.
KARACHI: The price of gold in Pakistan receded on Thursday as investors sought cover from Omicron-led uncertainty, inflation and its impact on the economy.
The precious commodity fell around Rs550 per tola and Rs472 per 10 grams to settle at Rs126,600 per tola and Rs108,539 per 10 grams, respectively.
Cumulatively, the safe-haven asset had gained Rs1,300 per tola in the last four sessions.
However, gold dealers said that due to a lack of purchasing power, there is no demand in the local market.
Meanwhile, the yellow metal stayed above the key $1,800-per-ounce level in the international market despite a decrease of $33. The price settled at $1,812.
Gold prices extended losses to a more than one-week low in the international market as the US dollar and Treasury yields rallied after US Federal Reserve Chairman Jerome Powell signalled an interest rate increase in March.
Interest rate hikes would raise the opportunity cost of holding non-yielding gold, but bullion has remained supported of late on safe-haven demand from the ongoing tensions over Ukraine and market volatility.
It is pertinent to mention that the gold rates in Pakistan are around Rs2,000 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,470 per tola and Rs1,260.28 per 10 grams today.
— With additional input from Reuters
