Gold extends losses to fifth day as rupee appreciates

• Gold prices lose Rs300 per tola to settle at Rs124,950.
• Silver prices in the domestic market remain unchanged.
• Bullion gains $18 per ounce to around $1,809 in global  market.

KARACHI: Gold extended losses into a fifth session on Tuesday, dropping to nearly to a two-month low, on expectations that economic recovery could sap inflationary pressure, curbing the metal’s appeal as a hedge.

According to All Sindh Saraf Jewellers Association (ASSJA), gold prices in the local market recorded a decrease of Rs300 per tola and Rs258 per 10 grams to settle at Rs124,950 per tola and Rs107,124 per 10 grams.

Cumulatively, the precious commodity had lost around Rs750 per tola during January.

Contrary to the trend in the local market, gold prices firmed above the key $1,800-level in the international market as investment demand strengthened, with a weak US dollar and Treasury yields offering further support.

It gained $18 per ounce to around $1,809 in the international market.

Commodity experts believe 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.

It is worth mentioning that the gold rates in Pakistan are around Rs1,500 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,450 per tola and Rs1,243.14 per 10 grams today.