Friday Sep 23, 2022
KARACHI: Gold prices dropped more than 0.5% Friday as a cocktail of factors from a robust dollar and worries around more interest rate hikes diminished bullion’s appeal.
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of the precious metal declined by Rs850 per tola and Rs728 per 10 grams to settle at Rs153,850 and Rs131,902, respectively.
Gold is stuck in a range and is going to continue to be in a range in the near term. The market will only break out into a direction after it gets more economic data and sees stability in rupee-dollar parity.
In the international market, the price of yellow metal plunged by $24 per ounce settling at $1,645 — its lowest since April 2020.
The renewed strength of the dollar is pushing gold lower. The gold market’s short-term outlook is still challenged by the market looking for a peak in the dollar and especially in the yields.
While gold is considered a safe investment during times of political and financial uncertainty, rising rates dull its appeal since it yields no interest.
Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10 grams.