Gold continues to drop

KARACHI: Domestic gold prices extended their declining trend on Tuesday as the previous yellow metal decreased by Rs100 to Rs88,550 per tola.

Rate of 10 grams gold fell by Rs87 to Rs75,917.

Global gold prices held steady today as uncertainties surrounding U.S.-China trade relations and Britain’s departure from the European Union offset pressure from a stronger dollar, Reuters adds.

Spot gold was down 0.1% at $1,529.40 per ounce at 1145 GMT, but still not far off its more than six-year high of $1,554.56. U.S. gold futures were up 0.6% at $1,538.60.

“We are having a battle right now against multiple layers of uncertainties in the market and a strong dollar,” Saxo Bank commodity strategist Ole Hansen said.

“The trade talks between U.S. and China are going nowhere. The political debacle in the UK with Brexit, where we are potentially facing another vote before the day is over, is adding enough underlying support to gold to offset the strength in dollar.”

The dollar climbed to a more than two-year high against other major currencies, making dollar-denominated gold costlier for investors holding other currencies.