Gold extends losses to third day, price plunges Rs2,700 per tola

KARACHI: Gold extended losses into a third session on Friday, falling below the threshold of Rs140,000 per tola on the rupee’s appreciation and expectations that economic recovery could sap inflationary pressure, curbing the metal’s appeal as a hedge.
According to the All Sindh Saraf Jewellers Association (ASSJA), gold prices in the local market recorded a decrease of Rs2,700 per tola and Rs2,315 per 10 grams to settle at Rs139,000 per tola and Rs119,170 per 10 grams.
Cumulatively, the precious commodity has lost around Rs4,500 per tola in the last three sessions.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.
Pakistan is 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 latest price for local markets was determined to keep in view the prices at which trades took place among buyers and sellers.
It should be noted that the gold price is standing below cost. Gold is cheaper by Rs4,000 per tola compared to its price in Dubai.
In the international market, bullion prices decreased by $5 per ounce to settle at $1,790.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,560 per tola and Rs1,337.44 per 10 grams today.-PNP