Gold price extends skinny gains on correction

Karachi-Pakistan (Dec 24)  The improvement in demand for yellow metal in international and domestic markets and upward correction in gold Futures salvaged metal from continuous downward rally while buyers consolidated their long positions by making forward deals.

However Gold Futures deals by traders remained firm and hedging pushed gold market’s buying firm.

Gold price was still within the reach of buyers in international and domestic markets during trading session. Gold closed at $1,134 an ounce with $2.5 upward variation while domestic bullion price also witnessed same trend.

Gold in tola term closed at Rs 44,453 with a gain of Rs 42 per tola while in grammage value, gold closed at Rs 38,152 per ten grams, up by Rs 36 a gram, traders said.

Buyers and hedgers in markets have control over gold Futures while improvement in future output on cards. Traders remained busy in making forward deals. The future market would get more strength in coming days on back of hedging by speculators. The potential buyers remained busy in hedging as they were maintaining the market mechanism, traders said.

The gold hedgers made some cautious deals. The general buyers remained on sidelines anticipating 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.

Source: DailyTimes