KARACHI: Gold closed week with a meagre loss of Rs50 per tola, with the yellow metal remaining under pressure from expectations that the recovery phase will help stocks and currency stay firm.
The rates edged lower by Rs50 per tola to Rs126,100 and dropped by Rs43 per 10 grams to Rs108,110 compared to Friday’s prices.
According to rates issued by All Sindh Sarafa Association, gold prices clocked in at Rs126,150 per tola and Rs108,153 per 10 grams on Friday.
Cumulatively, the gold gained only Rs100 per tola during the week.
It is pertinent to mention here that the association determines local prices based on rupee-dollar parity and international rates. According to the market practice, local prices of gold usually go down on the rupee’s appreciation against the US dollar and rising prices of commodities in the international market.
A firmer tone to economic data and strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,470 per tola and Rs1,260.28 per 10 grams today.
Gold extended declines and was set for its worst week since late November as growing expectations for US interest rate hikes pushed the dollar to a multi-month high, making bullion less attractive for overseas buyers
Spot gold fell 0.6% to $1,785.71 per ounce. It hit a six-week low of $1,779.20 earlier in the session and was headed to drop about 2.5% for the week.
Gold prices slipped below their 100-day and 200-day moving averages in the last session after the US Federal Reserve reaffirmed plans to end its pandemic-era bond purchases and signalled an interest rate hike in March. read more
“The current market environment has been very detrimental for gold. Investors are completely reassessing Fed expectations,” said Edward Moya, senior market analyst at brokerage OANDA.
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