KARACHI: The price of gold in the domestic market fell by Rs300 per tola and Rs257 per 10 grams on Wednesday in line with the performance during the week.
Domestic gold prices settled at Rs128,900 per tola and Rs110,511 per 10 grams owing to a declining trend in global rates.
A day earlier, gold prices in the local bullion market plunged by Rs1,350 per tola and Rs1,157 per 10 grams to reach Rs129,200 per tola and Rs110,768 per 10 grams.
Cumulatively, the yellow metal lost Rs2,500 per tola in the local market during the week of the last six sessions.
Earlier, speaking to Geo.tv, a gold dealer said that the price decline in the local market was in line with the international market as investors remained on the sidelines as hopes for progress in Russia-Ukraine talks dampened the metal’s safe-haven appeal.
He was of the view that a decline in the international oil prices also triggered a decline, as according to the market analysis, both commodities move in the same direction.
“Since last few weeks, investors have been on the sidelines because of the uncertain market situation,” he said, adding that the market is reacting to the tiniest of the news reports.
Another gold dealer had said that Pakistan remains a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the commodity locally.
Accordingly, the gold price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in local markets.
In the international market, bullion prices plunged by $41 per ounce to settle at $1,925 as bets that the US Federal Reserve may raise interest rates for the first time in three years added to pressure on gold.
Gold rates in Pakistan are around Rs4,500 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,500 and Rs1,286 today.
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