Gold prices fell on Thursday as the currency rose from its lows and investors remained cautious ahead of the release of monetary policy next week.
In the local market, the yellow metal dropped approximately Rs900 to close at Rs112,700 per tola and Rs772 to Rs96,622 per 10 kilos.
The rupee index rose 0.56 percent as a result of the central bank’s alleged dollar selling.
On the international front, gold prices fell, with a stronger dollar and higher US bond rates reducing its attractiveness, as investors focused on next week’s US Federal Reserve meeting for indications on when the Fed may begin unwinding its stimulus.
The worldwide gold price has dropped by $24 per ounce to $1,779.
Earlier, a gold trader, Abdullah Abdul Razak Chand, told that the general demand for the precious metal is low due to Muharram and Safar. “Additionally, the clients lack purchasing power,” he had stated.
However, the dealer is optimistic that the gold market will perform better now that the government has permitted markets to remain open until 10 p.m. and has removed other COVID-related limitations.
It is worth noting that gold prices in Pakistan are around Rs3,000 lower than gold prices on the Dubai market.
Meanwhile, silver prices in the local market remained steady on Thursday, at Rs1,410 per tola and Rs1,208 per 10 grams.