Daily Times

Despite rupee depreciation against the US dollar, which lost Rs6.01 during the week, gold price declines by Rs100 per tola According to rates issued by the All Sindh Sarafa Association, gold price settled at Rs147,000. The price decreased by Rs87 per 10 grams to settle at Rs126,028 per 10 grams on Saturday. The association determines local prices based on rupee-dollar parity and international rates. According to market practice, local prices of gold usually go down on the rupee’s appreciation against the US dollar and rising prices of commodities in the international market. A firmer tone to economic data and strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency as it spiked to a new peak (Rs162,500 per tola) on July 28. In the international market, the price of yellow metal dropped by $7 per ounce to settle at $1,738. It should be noted that the gold price stands below cost and is cheaper by Rs7,000 per tola compared to Dubai.