Gold loses traction, price drops by Rs700 per tola

• Gold price settles at Rs125,700 per tola and Rs107,767 per 10 grams.
• Price of gold in Pakistan recedes as investors seek cover from geopolitical uncertainty, inflation and its impact.
• Decline comes as news about some Russian troops near Ukraine returning to their bases drove a rebound in riskier assets.

KARACHI: The price of gold in Pakistan receded on Tuesday as investors sought cover from geopolitical uncertainty, inflation, and its impact.

The precious commodity fell by around Rs700 per tola and Rs601 per 10 grams to settle at Rs125,700 per tola and Rs107,767 per 10 grams, respectively.

The decline was registered as news about some Russian troops near Ukraine returning to their bases drove a rebound in riskier assets.

Meanwhile, the yellow metal stayed above the key $1,850-per-ounce level in the international market despite a decrease of $5. The price settled at $1,851.

Analysts believe that if bullion holds above the $1,850 level, in the absence of the geopolitical conflict, then it is a bullish signal.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs1,000 below the 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 today.