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March 6, 2021

Safe bet gold loses appeal, falls 8.1pc in month

Business

March 6, 2021

KARACHI: Gold prices fell Rs1,450 per tola in the local market on Friday continuing a downtrend of over 8 percent in a month, as investors are turning away from the safe bet commodity with Covid fear subsiding, traders said on Friday.

The falling trend also takes cue from the international market where gold rates decreased to $1,696 per ounce from $1,814 on February 6. In local market, gold prices decreased 8.1 percent or Rs9,050 to Rs102,750 per tola from Rs111,800 per tola on February 6.

According to All Sindh Saraf Jewellers Association, gold rates in the local market moved down to Rs102,750 per tola. Similarly, 10 gram gold price dropped Rs1,243 to Rs88,092.

Veteran goldsmith Shafi Khan said gold prices are declining regularly.

“Gold prices increased because of fear and now normalcy is being witnessed,” Khan said. “Prices of oil and other commodities are increasing while silver and gold are coming down in the international market.”

Silver rates dropped Rs10 to Rs1,340 per tola. Price of 10 gram silver also decreased Rs8.57 to Rs1,148.83.

“In the coming week, if it continues downtrend and lowers below Rs100,000 per tola, new buying might be witnessed. Those who were buying for marriages only would start for buying for as well,” Khan added.

An analyst said rupee appreciated against the US dollar, which affected the gold prices.

The local currency increased 6.7 percent or Rs11.3 against the dollar since August 26 last when it hit a record low of 168.43. The rupee has increased 0.57 percent so far this week.

“Though local buying has not increased yet, it is likely to improve in coming days,” said a gold trader. “When international market would come down to $1,680 per ounce, it would be better option for buyers to invest.”