Gold price remains depressed, wary ahead on Arab crisis
Karachi-Pakistan (June 11) Yellow metal price closed depressed as prime hedgers and investors negated making any big move on possible report of better output that may decide Gold Futures deals on short and long term basis, metal traders said.
Qatar-Arab states crisis also influencing the gold trade as traders are not keen to take new positions and it is expected general prices to be largely confined to a similar kind of range, said a metal analyst at domestic bullion market.
Spot gold was quoted at $1,267 an ounce, with $7 an ounce downward change on lower than expected demand from buyers, they added. Despite the recent past correction, gold prices are forecast to rise across the remainder of 2017, metal traders said.
Trading was light in the physical sector in domestic gold market. Metal lost Rs 274 per tola to close at Rs 49,766 per tola and down by Rs 236 per ten grams to close at Rs 42.711 per ten grams, metal traders said.
Buyers with less liquidity are basically waiting for yellow metal to go lower before buying again, said a metal dealer. Secondary buyers made deals according to their immediate need while general buyers remained on sideline.
Domestic trading in gold remained dull on back of insignificant buying. People have shifted to other basic needs before start of Ramazan, so trading usually dull on average, however business gained momentum during last week of Ramazan.
Members of All Sindh Sarafa and Jewellers Association and All Pakistan Supreme Council Jewellers Association said sale of gold plated jewellery in bazaars also declined. "It is due to high cost of living and most of the jewellery users belong to lower and lower middle class".
Buyers made deals according to their immediate needs. Local trading in gold remained dull on back of insignificant buying. Domestic dealers said the home gold prices decline/rising is depending 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.
Source: DailyTimes
