Saturday Oct 01 2022

Gold heads for weekly drop despite per tola rise

A representational image of gold bars. — Reuters/File
A representational image of gold bars. — Reuters/File

  • Gold price settles at Rs146,500 per tola.
  • Safe-haven metals need a fresh fundamental spark.
  • Cumulatively, gold price falls by Rs3,600 per tola during the week.

KARACHI: Gold gained 0.68% on Saturday, however, it was set for a weekly decline as signs of faster rupee recovery and easing inflation dented sentiments.

The gold price rose by Rs1,000 per tola and Rs857 per 10 grams to settle at Rs146,500 per tola and Rs125,600 per 10 grams, data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

The safe-haven metals need a fresh fundamental spark to heighten investor and trader concern, and it's just not happening. The sideways grind that the market has seen ... has invited some chart-based selling.

Cumulatively, the price of gold declined by Rs3,600 per tola during the week ended October 1 as the Pakistani currency recovered nearly 5% against the US dollar during the period under review.

In the international market, the price of the yellow metal declined by $3 per ounce settling at $1,661.

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 Rs1,560 per tola and Rs1,337.44 per 10 grams.

With gold under pressure, silver should also continue to struggle to outperform but a clear positive turn in gold holds considerable risks for silver.