Gold price breaks 12-day-long winning streak in Pakistan

• Gold price plunges Rs3,350 per tola to settle at Rs177,300.
• Dealers have already anticipated market to undergo a correction.
• Prices have cumulatively gained Rs16,100 since Dec 1.

Gold prices dipped on Friday as investors holding long positions took profits after 12 straight sessions of gains, although the outlook remained bullish with prices hovering near a record peak.

The price of gold plunged by Rs3,350 per tola and Rs2,872 per 10 grams to settle at Rs177,300 and Rs152,006, according to All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The dealers had already anticipated the market to undergo a correction after the precious commodity scaled to new peaks. The gold hit an all-time high of Rs180,650 per tola on December 22.

Gold prices have been rising for the last many days and have cumulatively gained Rs16,100 or 9.98% per tola since December 1, raising concerns about whether the soaring price is sustainable or constitutes an unsustainable bubble.

Chand has been blaming speculators for taking gold prices to exorbitant rates. He said that contrary to the claims there is very less demand in the local market.

It should be noted that the APSGJA notifies the gold rates to the market every day after determining the price by keeping in view its rates in world markets, the rupee-dollar exchange rate, and demand and supply in domestic markets.

Analysts believe that the unavailability of the dollar in Pakistan and the widening difference between interbank and open market exchange rates triggered the recent price hike; however, grey markets of the precious commodity have also added fuel to the speculations.

Meanwhile, silver prices remained unchanged at an all-time high of Rs2,100 per tola and Rs1,800.41 per 10 grams, respectively.

In the international market, gold prices eked out gains ahead of a long holiday weekend as investors awaited US inflation data due later in the day that could offer some clues to the Federal Reserve rate-hike path. Prices settled at $1,797 after a decrease of $18 per ounce.