Gold prices decline globally in contrast to domestic markets

KARACHI: The per tola gold price on Monday registered a decline globally in contrast to domestic markets where it remained stable, ARY NEWS reported

The price of per told gold witnessed stability in Pakistan as the per tola of precious yellow metal now costs Rs115,300, said Muhammad Arshad, the chairman of the All Pakistan Jewellers Manufacturers Association.

Likewise, the rate of 10 grams of gold also remained stable at Rs 98,851, witnessing no change during the day.

International prices

According to a Reuters report, gold slipped on Monday as dollar strengthened on bets the Federal Reserve would not put off stimulus tapering, but stagflation expectations limited losses in the bullion that is perceived as a hedge against inflation.

Spot gold was last down 0.1% to $1,755.81 per ounce by 10:46 a.m. EDT (1446 GMT), while U.S. gold futures rose 0.1% to $1,758.50.

Support for gold “could be coming from some people thinking we have some stagflation at the moment, which is when gold is at its best, as inflation goes higher,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Jitters over high inflation combined by stalling economic growth stunted global shares, amid rallying oil prices.

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The dollar held steady, hurting gold’s appeal for those holding other currencies.

Spot silver rose 0.1 % to $22.68 per ounce.

Palladium advanced 3% to $2,140.14 per ounce, with analysts attributing the bounce to short-covering after recent declines, while platinum was last down 0.5% at $1,021.02, after hitting a 2-month peak earlier. Palladium is seeing a technical rebound after prices hit support around $1,870, said ANZ analyst Soni Kumari.

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