‘COVID-19 fear subsiding’: Gold rate falls 8.1% in a month

• Trader says the gold rate has fallen as investors are turning away from the safe bet commodity.
• New buying might be witnessed in the coming week if the downward trend continues and lowers below Rs100,000 per tola.
• Gold rates in the local market moved down to Rs102,750 per tola on Friday.

KARACHI: The downward trend in the prices of gold continued on Friday when the rates of the precious metal fell Rs1,450 per tola in the local market.

The gold rate has fallen over 8% in a month as investors are turning away from the safe bet commodity with COVID-19 fear subsiding, according to traders quoted in a The News report published on Saturday.

The falling trend also takes a cue from the international market where gold rates decreased to $1,696 per ounce from $1,814 on February 5. In the local market, gold prices decreased 8.1% or Rs9,050 to Rs102,750 per tola from Rs111,800 per tola on February 5.

Read more: Gold traded at Rs102,750 per tola on March 5

According to the 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.

Bullion trader Shafi Khan told the publication that 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 while price of 10 gram silver also decreased Rs8.57 to Rs1,148.83.

According to Khan, new buying might be witnessed in the coming week if the downward trend continues and lowers below Rs100,000 per tola.

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

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

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