Gold retreats in line with international market

• Domestic gold prices settle at Rs118,300 per tola and Rs101,423 per 10 grams on Friday.
• Bullion prices in the international market record a decline of $20 per ounce to settle at $1,780.
• Local dealers are satisfied with the decline in gold prices as they believe that this will increase the already surging seasonal demand.

KARACHI: The price of gold in Pakistan registered a decrease of Rs700 per tola and Rs600 per 10 grams to settle at Rs118,300 per tola and Rs101,423 per 10 grams on Friday.

Bullion prices in the international market recorded a decline of $20 per ounce to settle at $1,780 as a softer dollar countered rising expectations that the Federal Reserve would tighten its policy earlier than anticipated.

Local dealers are, however, satisfied with the decline in gold prices as they believe that this will increase the already surging seasonal demand for gold due to the wedding season.

It is pertinent to mention that the gold rates in Pakistan are around Rs1,000 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,430 per tola and Rs1,226 per 10 grams.