Local rates fall by Rs21,400 per tola as global gold gains on safe-haven demand
\n Islamabad
\nGold prices in Pakistan dropped sharply on Friday, even as international gold prices rose, rebounding from a steep selloff in the previous session.
\nAccording to the All Pakistan Sarafa Gems and Jewellers Association, the price of per tola gold declined by Rs21,400 to Rs507,762, while the rate for 10 grammes dropped by Rs18,347 to Rs435,324.
\nSimilarly, the price of 10 grammes of 22-karat gold dropped by Rs16,819 to Rs399,061.
\nThe price of silver also recorded a downward trend, with per tola silver declining by Rs1,430 to Rs7,825, while the price of 10 grammes of silver declined by Rs1,226 to Rs 6,708.
\nIn the international market, gold prices gained, rebounding from a sharp selloff in the previous session, as global equities fell and US-Iran tensions lingered, while the CME Group raised margins on precious metals to counter risk.
\nSpot gold rose 2.3% to $4,879.06 per ounce, and US gold futures for April delivery gained 0.2% to $4,900.9 per ounce.
\n\u201cI do see a bit of a safe-haven investment coming in, but bear in mind that there is still some caution after last Friday\u2019s selloff… we still have this fear about Iran-US tension that is still intact,\u201d said Kelvin Wong, a senior market analyst at OANDA.
\n\u201cIt\u2019s going to be a very near-term choppy price movement for gold between $5,169, which is the key short-term resistance and the key short-term support at the $4,400 level.\u201d Iran and the US started high-stakes negotiations in Oman on Friday regarding Tehran\u2019s nuclear programme.
\nA global stock rout on Wall Street spilled into Asia on Friday, leaving many regional benchmarks in the red.
\nGold, a traditional safe haven, does well in times of geopolitical and economic uncertainty. Spot silver was up 4.2% at $74.21 an ounce on the day after falling below the $65 per ounce level during early Asia trading.
\nGold was up 0.3% for the week, while silver was down more than 12% after shedding 18% last week, its biggest weekly fall since 2011.
\nThe US dollar lingered near a two-week high, pressuring precious metals this week, after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair last week.
\nMeanwhile, the CME Group hiked margin requirements for gold and silver futures contracts on Thursday \u2014 its third increase in the last two weeks \u2014 as the exchange operator seeks to curb risks from heightened volatility in the precious metals market.
\nGold premiums in India also more than halved from decadal highs this week as price volatility deterred buyers.
\nThe US non-farm payrolls report for January has been pushed back from Friday to February 11 due to a four-day partial government shutdown that has now ended.
\nSpot platinum added 0.2% to $1,990.42 per ounce, while palladium gained 2.9% to $1,664.08. Both were down for the week.<\/p>\n","protected":false},"excerpt":{"rendered":"
Local rates fall by Rs21,400 per tola as global gold gains on safe-haven demand Islamabad Gold prices in Pakistan dropped sharply on Friday, even as international gold prices rose, rebounding from a steep selloff in the previous session. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of per tola gold declined […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-529893","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n