Gold price drops by 200 rupees per tola in Pakistan
- Gold drops Rs 200 to Rs 126,000 per tola.
- The gold bar price is Rs 108,025 per 10 grams.
- The silver price remains unchanged at 1,460 rupees per tola.
KARACHI: In line with the trend in world markets, gold prices in Pakistan posted meager losses on Wednesday.
Gold fell 200 rupees to 126,000 rupees per tola and rose 171 rupees to 108,025 rupees per 10 grams.
Gold prices on Tuesday were Rs 126,200 per tola and Rs 108,196 per 10 grams.
Meanwhile, domestic silver prices remained unchanged at 1,460 rupees per tola and 1,251.71 rupees per 10 grams.
Gold is weakening in the international market
Gold fell from a high of more than a month in the last session as a stronger US dollar and an increased appetite for riskier assets weighed on sentiment.
Spot gold fell 0.3% to $ 1,800.02 an ounce while U.S. gold futures fell 0.6% to $ 1,800.
“The main market driver is the decline in the euro dollar … the dollar is getting stronger and that’s not the best thing for gold,” said Carlo Alberto De Casa, market analyst at Kinesis.
Despite the surge in Omicron cases, investors are waiting to see if the US Federal Reserve will hike rates three times in the coming year, De Casa said, adding that central bank policies will continue to be a market driver in 2022.
Higher interest rates increase bond yields, making unprofitable precious metals less attractive.
– With additional input from Reuters