Due to stability in international gold market, domestic market also shared the rise in line with rupee-dollar parity.
The real increase in gold prices would come next month when gold demand is expected to increase on demand for jewellery.
Gold closed at $1,314 an ounce in international market scoring high of $2 an ounce for the second day running, with the market poised for more gains.
In domestic market yellow metal price increased by Rs 1,636 per tola to close at Rs 56,077 per tola while in grammage term, it rose by Rs 1,404 per ten grams to Rs 48,128 per ten grams.
Expectations of further inflows of demand with imminent release of a new exchange-traded gold fund in New York were also enhancing gold’s allure.
Domestic gold prices are rising in line with the trend of global gold markets. But, the increase is usually not as much as takes place internationally because people stop buying the metal when prices are too high.
The Futures Gold price would be paradox as the major traders in metal dealing were missing the real output level as next three months remained speculative on price mechanism.
The gold price remained in the hands of leading manipulators in India, Pakistan and other major gold buying countries, as they remained busy influencing current prices and gold Futures. The potential buyers in India and Pakistan remained busy in hedging.
Buyers made deals according to their immediate needs. Local trading in gold remained moderate on back of hedging.
Published in Daily Times, March 21th 2018.
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