KARACHI: Gold price remained down in international and domestic bullion markets on Futures correction and dull trading as metal speculators feared better output and prolonged overall international inflationary conditions. Gold was trading at $1,314 an ounce with $9 downward correction after report that showed US financial system under pressure. After declining below the previous month’s high, the market saw very low physical buying due to lack of demand from hedgers and jewellers. In tola terms, gold touched low at Rs 54,502, losing Rs 395 per tola and in per gram value, it fell by Rs 340 to stay at Rs 46,776 per 10 grams. The price of gold is an amalgam of diverse and changing influences, from currencies to jewellery, from investors to speculators. Market experts maintain that gold trading cannot be seen in isolation, but must be understood as a global thermometer, measuring monetary, political, and economic stability as well as raw demand/supply features of the metal itself. The low demand of yellow metal in international and domestic markets and downward correction in Futures has depressed metal prices while buyers consolidated their long positions by making forward deals. Gold price was still within reach of buyers in international and domestic markets during trading session. 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 also remained dull on back of insignificant buying.
Published in Daily Times, February 9th2018.
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