Gold down by $9 an ounce on correction

Karachi-Pakistan (May 20)  Yellow metal price fell by $9 an ounce in international market on technical correction as metal speculators feared better output, metal dealers said.

Gold was trading at $1,252 an ounce after report that showed US financial system in red.

We saw a little bit of physical buying because the market is below the recent high, said the dealers, referring to demand from hedgers and jewellers.

In tola terms gold touched low at Rs 49,172, shedding Rs 322 per tola and in per grammage value, it dipped by Rs 276 to stay at Rs 42,202 per ten grams, dealers said.

The price of gold is an amalgam of diverse and changing influences, from currencies to jewellery, from investors to speculators. It cannot be seen in isolation as a metal, but must be understood as a Global Thermometer measuring monetary, political, economic, stability as well as the raw demand/supply features of the metal itself.

The low demand of yellow metal in international and domestic markets and downward correction in Futures put metal prices depressed while buyers consolidated their long positions by making forward deals.

Gold price was still within the reach of buyers in international and domestic markets during trading session.

Buyers and hedgers in markets have control over gold Futures and traders remained busy in making forward deals.

The gold hedgers made some cautious deals. The general buyers remained on sidelines anticipating further easing in price in coming days on dollar-rupee parity.

Buyers made deals according to their immediate needs. Local trading in gold remained dull on back of insignificant buying.

Source: DailyTimes