Gold retreats in Pakistan as rupee gains upper hand

• The yellow metal shed Rs1,200 per tola to settle at Rs122,600.
• Cumulatively, gold has gained Rs5,300 or 4.5% per tola during the month of November.
• Gold rates in Pakistan are around Rs2,500 below cost compared to Dubai market.

KARACHI: Gold retreated over Rs1,000 on Tuesday as a buoyant rupee took the shine off the metal.

The yellow metal recorded a decrease of Rs1,200 per tola and Rs1,028 per 10 grams to settle at Rs122,600 and Rs105,110, respectively.

A day earlier, the precious commodity closed at Rs123,800 per tola and Rs106,138 per 10 grams.

Cumulatively, the safe-haven asset has gained Rs5,300 or 4.5% per tola during the month of November.

Earlier, speaking to Geo.tv, a gold dealer had said that the local demand in the market is almost flat because the gold is around $2,500 under cost.

"Buyers are purchasing cautiously after analysing the rumours spreading in the market," he said.

He was of the view the price of the precious commodity will decrease in the days to come after Pakistan receives funds worth $3 billion from Saudi Fund for Development.

In the international market, gold rose as investors sought safe havens again after Moderna's CEO warned that COVID-19 vaccines were likely to be less effective against the Omicron variant, putting bullion on course for a second straight monthly gain.

Spot gold gained 0.7% to $1,796.70 per ounce by 1036 GMT, while US gold futures advanced 0.7% to $1,798.30.

It is pertinent to mention that gold rates in Pakistan are around Rs2,500 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.