Gold maintained its downturn on the second successive day, falling by a fresh Rs2,900 to Rs126,100 per tola (11.66 grams) in Pakistan in line with the global trend on Tuesday.
“Gold kept losing as the US dollar strengthened against other world’s major currencies and Russia successfully introduced the first Covid-19 vaccine to the world,” BIPL Senior Trader Rizwan Ahmed Samra said while talking to The Express Tribune.
The yellow metal has lost a cumulative Rs5,900 in the past two days (Monday-Tuesday) to Rs126,100 per tola from a record high of Rs132,000 per tola posted on Friday (August 7) in the country.
With the latest decline of $47, the commodity has lost a total of $71 in the past two days to $1,988 per ounce (31.10 grams) in the international markets, All Sindh Saraf Jewellers Association (ASSA) reported. Gold hit an all-time high of $2,072 per ounce in the world market last week.
The dollar strengthened on a drop in rate of unemployment in the US and improvement in other macroeconomic indicators. The introduction of the much-awaited vaccine prompted investors to continue booking profit.
Moreover, the US-China trade war may de-escalate as Beijing increased imports from Washington recently. The development, if materialised successfully, would be another setback for gold, he added. The previous record high level of $1,920 per ounce stands as the next resistance level for gold. “If it falls below the level it may lose to $1,800 per ounce in short to medium run,” the analyst stated.
Published in The Express Tribune, August 12th, 2020.
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