Gold prices decline after a seven-day rally

Investors took to selling stocks for profits after exactly one week of gold prices moving steadily up, which showed a rise in the precious metal’s value by Rs6,500 per tola.

Gold, which was priced at Rs98,600 per tola on June 17, jumped to Rs105,100 on June 24, according to the All Sindh Saraf and Jewellers Association.

The international price of an ounce of gold moved up by $62 to $1,777 between June 17 and June 24.

However, gold prices fell by $15 per ounce or Rs2,300 per tola in the local market Thursday. It is priced at Rs102,800 per tola locally and $1,762 per ounce in the international market.

This has been a normal phenomenon wherein investors start taking profits after gold price increases by $50 to $60, according to MAFA Capital CEO Adnan Agar.

Profit-taking happens when investors start selling stocks or shares after their value increases.

“I think the outlook for the gold is stable to positive, which depends on a change in the market environment,” Agar said.

It means that the prices will either stay stable or rise, but a significant drop is unlikely to happen. However, price corrections can be expected.

The rising trend in the prices of gold is attributed to the bleak economic outlook the world over.

Investment in the precious metal is considered safe in times of wars and calamities.

Related Articles