Gold loses traction, price drops by Rs600 per tola in Pakistan

• Domestic gold prices settles at Rs123,400 per tola and Rs105,796 per 10 grams despite an increase in global rates.
• Cumulatively, during the week the bullion gained around Rs600 per tola.
• Silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.

KARACHI: Gold price in Pakistan fell by Rs600 per tola and Rs514 per 10 grams owing to the rising strength of the dollar in the international market.

On Saturday, domestic gold prices settled at Rs123,400 per tola and Rs105,796 per 10 grams.

The international gold price gained $11 per ounce to $1,784 today as uncertainty sparked by the Omicron coronavirus variant and a dip in US Treasury yields boosted the safe-haven metal's appeal.

Cumulatively, during the week, the bullion gained around Rs600 per tola.

Analysts believe that inflation is always a favourable scenario for gold with concerns regarding an economic slowdown in Pakistan and worldwide adding fuel to the uptrend in gold prices.

Local gold dealers said that the return of inflationary days in Pakistan and around the world has once again invited investors’ attention towards the yellow metal.

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