Gold prices down by Rs500 per tola

Gold falls to Rs44,600 per tola as both local and international markets slow down.

KARACHI: Gold prices declined by Rs500 per tola (11.7 grams) to Rs44,600 on Saturday, as both local and international markets slowed down. The precious metal was valued at Rs38,228 per 10 grams over the weekend.

Gold dealers of the Karachi Sarafa Bazaar said that Muharram was always a lean period for sales as people avoided celebrating on occasions such as weddings, engagements and birthdays.

Furthermore, dealers said that high gold prices had pushed investors and customers to other alternatives such as silver and artificial jewellery.

President of All Sindh Saraf Jewellers Association Haroon Rashid Chand said that gold prices may decline further as international markets are expected to ease.

In the international bullion market, gold prices stood at $1,370 an ounce on Friday. “With the holidays (Christmas and New Year) approaching fast, traders are not going to be aggressive in establishing new positions and that is probably keeping a lid on the gold market,” FastMarkets.com reported.

“When the clock strikes 2011, we will see gold starting to climb again, but until then we are going to see traders, who have benefited from a record-breaking year, taking a little money off the table,” another analyst said.

Published in The Express Tribune, December 19^th, 2010.