Gold loses shine as rupee strengthens

• Gold price drops by Rs700 per tola to settle at Rs124,300.
• The bullion price settles at $1,803 in global market.
• Silver prices remained unchanged in domestic market.

KARACHI: Gold lost its shine on Thursday as the rupee strengthened against the US dollar on the back of the International Monetary Fund (IMF) programme.

Gold price in the local bullion market fell by Rs700 per tola and Rs600 per 10 grams to settle at Rs124,300 per tola and Rs106,567 per 10 grams.

On Wednesday, the precious metal closed at Rs125,000 per tola and Rs107,167 per 10 grams.

In the international market, gold prices eased  as the US dollar and Treasury yields strengthened a day after dismal private payrolls data sent bullion prices to one-week highs.

The bullion price settled at $1,803 with a decline of $6.

It is pertinent to mention here that gold is considered a safe-haven asset and its price surges in times of uncertainty. Pakistan is a net importer of gold.

Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.

However, it is pertinent to mention that gold rates in Pakistan are around Rs1,500 below the cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,450 per tola and Rs1,243.14 per 10 gram today.