Gold snaps five-day losing streak, rises by Rs1,600 per tola

KARACHI: Gold price in Pakistan recorded an increase of Rs1,600 on Saturday, as it snapped its five-day losing streak.
Gold was up Rs1,600 at Rs143,500 per tola and increased by Rs1,372 to Rs123,028 per 10 grams. The rates of gold were Rs141,900 per tola and Rs121,656 per 10 grams on Friday.
Cumulatively, the precious commodity has lost around Rs17,700 during the period of August 1-5.
Shedding light on the demand in the domestic market, a gold dealer told Geo.tv that despite a massive plunge of over Rs17,000, the demand in the local market remained dismal due to a lack of purchasing power.
A significant recovery of the Pakistani rupee against the US dollar during the week dimmed the shine of the yellow metal.
Another gold dealer earlier 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 domestic markets.
The dealers had already anticipated the market to undergo a correction after the precious commodity scaled to new peaks. The gold hit an all-time high of Rs162,500 per tola on July 28.
It should be noted that the gold price is standing below cost. Gold is cheaper by Rs2,000 per tola compared to its price in Dubai.
The latest price for local markets was determined to keep in view the prices at which trades took place among buyers and sellers.
In the international market, bullion prices declined by $10 per ounce to settle at $1,777.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,620 per tola and Rs1,388.88 per 10 grams today.-PNP