Gold’s Shine Continues To Fade As Price Declines FurtherOUS News

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The luster of gold continues to fade as the price drops further. Gold prices fell more than 0.5% on Friday as a cocktail of factors from a strong dollar and concerns over further interest rate hikes diminished bullion’s appeal.

Data released by the All Pakistan Sarafa Gems and Jewelers Association (APSGJA) showed that the price of the precious metal fell by Rs850 per tola and Rs728 per 10 grams to stand at Rs153,850 and Rs131,902, respectively.

Gold is stuck in a range and will continue to be so in the near term. The market will only take a direction after getting more economic data and seeing the stability of the rupee-dollar parity.

Read more: The dollar continues its bullish march, increases by Rs1.07 in interbank

On the international market, the price of the yellow metal fell $24 an ounce to settle at $1,645, its lowest since April 2020.

The renewed strength of the dollar is pushing gold lower. The short-term outlook for the gold market is still challenged by the market looking for a peak in the dollar and especially returns.

While gold is considered a safe investment in times of political and financial uncertainty, rising rates blunt its appeal since it earns no interest.

The price of gold in Pakistan is around 2,000 rupees below cost compared to the market price in Dubai.

Meanwhile, domestic silver prices remained unchanged at Rs 1,570 per tola and Rs 1,346.02 per 10 grams.

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