Gold prices decline slightly

KARACHI: Gold prices fell by Rs42 to Rs33,900 per 10 grams on Thursday as the international prices also declined. The yellow metal also reduced to Rs39,550 per tola (11.7 grams) in the local bullion market.

Gold expert Hanif Chand said that it was a welcome sign for the local dealers. He said that dealers had been worrying since the precious metal had started to incline as the Eid season is nearing now.

He added that the movement in the bullion markets of the entire country were low at the moment as gold was yet high and many in the country could not afford it. “However, the relief in gold prices would hopefully help us to revive some business” he said.

Chand said that the depreciating rupee played a very important role in the value of gold, as the rupee- dollar parity directly affected its rates in the in domestic bullion market. Furthermore, he said that the precious metal had lost its charm both amongst the consumers and the investors. He said that the market continued to remain cold despite gold’s value mostly declining over the week.

Published in The Express Tribune, September 3^rd,  2010