KARACHI: Yellow metal price remained dull in international and domestic bullion market on Futures correction and dull trading as metal speculators feared better output and prolonged overall international inflationary conditions, metal dealers said.
Gold was trading at $1,286 an ounce with $3 downward correction after report that showed US financial system under pressure on standoff with South Korea.
We saw a little bit of physical buying because the market was below the past month high, said metal dealers, referring to demand from hedgers and jewellers.
In tola terms gold touched low at Rs 50,781, losing Rs 131 per tola and in per grammage value, it stood dull by Rs 112 to stay at Rs 43,583 per ten grams, metal dealers said.
The price of gold is an amalgam of diverse and changing influences, from currencies to jewellery, from investors to speculators. It cannot be seen in isolation as a metal, but must be understood as a Global Thermometer measuring monetary, political, economic, stability as well as the raw demand/supply features of the metal itself.
The low demand of yellow metal in international and domestic markets and downward correction in Futures put metal prices depressed while buyers consolidated their long positions by making forward deals.
Gold price was still within the reach of buyers in international and domestic markets during trading session.
Buyers and hedgers in markets have control over gold Futures and traders remained on sidelines in making forward deals. The gold hedgers made some cautious deals. The general buyers remained on sidelines anticipating further easing in price in coming days on dollar-rupee parity.
Buyers made deals according to their immediate needs. Local trading in gold remained dull on back of insignificant buying.
Published in Daily Times, August 25th 2017.