In 2006-07, a 1 percent withholding tax was imposed on commercial imports of gold in the country. Photo: Express News
Gold prices declined in international and domestic markets on Saturday. In the international bullion market, gold dropped $91 per ounce to $4,083.
In local markets, the price of gold per tola fell by Rs 9,100 to Rs 430,662, while 10 grams of gold decreased by Rs 7,799 to Rs 369,223.
Spot gold was down 1.9% at $4,092.72 per ounce as of 02:33 p.m. ET (1933 GMT), after earlier sliding more than 3%. Despite the fall, bullion is up 2.3% so far this week.
Read: Gold prices rise despite global dip
In other metals, spot silver edged down 2.8% to $50.84 per ounce but is still up 5.2% for the week.
Earlier this week, gold prices in Pakistan edged higher on Tuesday, continuing their upward trend despite a slight decline in international markets.
Locally, the price per tola rose from Rs5,900 to Rs435,762, while 10-gram gold was sold for Rs373,595, up Rs5,065, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
On Monday, gold had surged by Rs7,400 per tola, closing at Rs429,862. Internationally, gold prices eased slightly on Tuesday after hitting a near three-week high earlier, as traders booked profits.
Market optimism over the potential resumption of US economic data releases and hopes that the Federal Reserve may cut interest rates next month helped limit losses.
Adnan Agar, Director of Interactive Commodities, while commenting on market dynamics, noted that gold’s daily high reached $4,148, with a low of $4,097. “After touching the high, prices dipped about $40, when the US session opened.
There is strong support at $4,155; if breached, gold could rise to $4,200-4,220. However, if resistance holds, it may retract to $4,080-4,050,” he said.
“We just got into good resistance around the halfway back point and that probably prompted some profit-taking on longs after Monday’s strong gains and perhaps a little bit of speculative selling up there as well,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
Read More: Gold prices rise in global, local markets
The US Senate on Monday approved a compromise that would end the longest government shutdown on record. The shutdown has triggered a data blackout, leaving policymakers and markets without key indicators on jobs and inflation.
The central bank trimmed rates at its latest meeting, but Chair Jerome Powell stressed that another cut this year was far from certain. Markets see a 64% chance of a rate cut in December, CME’s FedWatch Tool showed.
Meanwhile, the Pakistani rupee edged higher against the US dollar on Tuesday, gaining 0.01% in the inter-bank market. It closed at 280.78, up Rs0.03 from the previous session. On Monday, the rupee had ended at 280.81.
According to Ismail Iqbal Securities, at the close of trading, the Pakistani rupee appreciated 0.01% day-on-day against the US dollar, settling at 280.78.
On a calendar year-to-date basis, the currency has depreciated 0.79%, while it has gained 1.06% in the fiscal year to date.
