- Gold price per tola price settles at Rs129,200.
- Retreat in international oil prices boosts risk appetite.
- Silver prices in the domestic market gain Rs20 per tola.
KARACHI: Gold prices extended declines on Tuesday after a retreat in international oil prices and planned diplomatic talks between Russia and Ukraine boosted risk appetite.
According to the All Sindh Sarafa Jewellers Association (ASSJA), gold prices in the local bullion market dropped by Rs1,350 per tola to reach Rs129,200, while the price of 10 grams gold decreased by Rs1,157 to reach Rs110,768.
A day earlier, the precious commodity closed at Rs130,550per tola and Rs111,925 per 10 grams.
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 ahead of an expected rate hike from the Federal Reserve and 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.
Earlier, 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 its 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 Rs4,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market gained Rs20 per tola and Rs17.14 per 10 grams to settle at Rs1,500 and Rs1,286 today.
