Gold range bound

Gold prices remained range bound in the outgoing week, with per tola rates closing at Rs39,379.


Express August 22, 2010

KARACHI: Gold prices remained range bound in the outgoing week, with per tola rates closing at Rs39,379.

Data obtained from the Pakistan Gold Jewellers Association showed that the prices of the precious metal increased by Rs89 per tola from Monday’s opening of Rs39,290.

Similarly, the price of ten grams of gold increased from Rs33,721 on Monday to Rs33,797 by the close of trade on Saturday.

Gold dealers say that continuing pressure on the rupee has kept interest of investors alive in the market for precious metals.

They pointed out that the rate for ten grams of silver has also increased nominally from Rs496 on Monday to Rs506 at the end of the week.

Dealers also said that export growth from the country is expected to slow while need for imports is expected to rise on the back of recent floods.

Investors expect the local currency to weaken as a consequence of successive deficits on the external front.

Meanwhile, activity in local gold markets has been dim since the onset of Ramazan.

“People typically spend more on food and other items during Ramazan so our market receives less volume during this time,” commented Chairman All Pakistan Gold Jewellers Association, Haroon Chand. However, he was optimistic that demand is likely to bounce back in weeks ahead.

Published in The Express Tribune, August 22nd, 2010.

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