Gold dips Rs6,200 in one week

Precious metal closes at Rs89,000 per tola

KARACHI: The gold price dropped Rs6,200 in the past one week to Rs89,000 per tola on Monday in the face of a sell-off in the global metals market as investors offloaded the commodity to keep cash largely due to the uncertainty caused by the spread of coronavirus across the world.

The gold price had been at Rs95,200 per tola on Monday last week (March 9), according to the All Sindh Saraf and Jewellers Association.

Talking to The Express Tribune, MAFA Capital CEO Adnan Agar said the fall was well in line with market expectations as all markets had taken a bearish stance owing to the threat posed by the novel coronavirus.

“Investors in the gold market, both local and international, are booking profit and encashing their investments because there is uncertainty about the future,” he said. “No one can speculate what is going to happen next, hence, buyers are adopting a cautious stance and selling their assets at attractive values.”

In Pakistan, gold touches record high at Rs93,400 per tola

He added that persistent selling in markets always sparked a preference for cash and that was what happened in the gold market. Internationally, the gold price shed $60 to stand at $1,470 per ounce, according to rates announced by the local gold association on Monday evening.

Agar expected the international gold price to fall to $1,400 and then rebound. However, he considered it difficult to predict correctly due to continued uncertainty throughout the globe.

He stressed that as long as international stock markets maintained the bear run, volatility in local and international gold prices would persist.

He pointed out that apart from gold, every asset market was experiencing a sell-off. “Markets in the European Union are tumbling and the US is bearing the brunt of coronavirus. It is no surprise that all markets have turned bearish.”

Published in The Express Tribune, March 17^th, 2020.

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