Gold snapped its five-day-long bullish streak as price declined by 0.5% as investors liquidated some long positions.
The prices declined by Rs850 per tola and Rs729 per 10 grams to settle at Rs168,800 and Rs144,719, respectively, data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.
The pullback was in line with the dealers’ expectation of the market to undergo a correction after scaling to new peaks in the last five sessions.
Rupee depreciation triggered a rally in the gold market which led to an increase of Rs5,750 per tola in the last five sessions. The yellow metal scaled to all-time high peak of Rs169,650 per tola on December 12.
Meanwhile, silver prices stayed above the key level of Rs1,900 per tola. The price remained unchanged at an all-time high level of Rs1,970 and Rs1,688.95.
The latest prices for local markets were determined to keep in view the prices at which trades took place among buyers and sellers.
During the previous sessions, gold dealers complained that since gold prices were touching new peaks in the country, it had seized to exist as a lucrative business
Only investors are investing in gold here. Otherwise, artificial jewellery is being used in marriages and other ceremonies, they said.
A day earlier, speaking to Geo.tv, AA Gold Commodities Director Adnan Agar cited a shortage of dollars as a major reason behind rising gold prices in the local market.
“Investors want to invest in the dollar because of the rising difference between the open market and the interbank market rate, which is around Rs20-30; however, despite the significant difference dollar isn’t available and people are concerned about the financial situation in Pakistan and chances of default,” he explained the reason behind sudden shift in investors focus.
He added that because of the speculations that the dollar can reach 350-400 against the rupee; investors were trying to invest in the precious commodity.
“However, due to its [dollar] shortage they have shifted their focus toward gold as the price of the yellow metal is also rising in the international market,” Agar maintained.
In the international market, gold price fell registered a decline of $7 per ounce settling at $1,787.