Gold extends losses as rupee rebounds

• Gold rates drop by Rs450 per tola to Rs130,750.
• Price of 10-gram gold settles at Rs112,097.
• Silver prices in the domestic market remain unchanged.

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

The rates went down by Rs450 per tola to Rs130,750 and dropped by Rs386 per 10 grams to Rs112,097 compared to Thursday's prices.

According to rates issued by All Sindh Sarafa Association, gold prices clocked in at Rs131,200 per tola and Rs112,483 per 10 grams on Thursday (March 10).

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 firmer tone to economic data and strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency.

The international gold price fell by $22 per ounce to $1,983 on Friday.

Gold rates in Pakistan are around Rs6,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams today.