Gold prices record massive drop in domestic market

KARACHI: Bullion prices of one tola and 10 grams of gold in the domestic market dropped by Rs2400 and Rs2057 respectively on Saturday, ARY News reported.

According to All Pakistan Jewellers Association, the rate of one tola and 10 grams of precious yellow metal stands at Rs91,450 and Rs78,403 after the recent drop.

Likewise, one gram of gold decreased by Rs205 to Rs7,840.

A day earlier, the global market saw gold prices retreating as investors booked profits from a 1% jump in the last session, but the metal had some support as mounting concerns over the rapid spread of coronavirus lifted expectations of rate cuts by major central banks.

Spot gold was down 0.7% at $1,630.86 per ounce by 0845 GMT. U.S. gold futures slipped 0.6% to $1,631.90 per ounce.

“This virus is getting a lot more serious … People are worried there might be a need for some more stimulus measures, so that means lower (interest) rates,” said John Sharma, economist at National Australia Bank, adding that high prices prompted some profit-taking.

Bets rose that the U.S. Federal Reserve would cut interest rates as soon as next month to cushion the economy from the virus’ impact.