KARACHI: Yellow metal price failed to recover downward trend and came under correctional phase on back of Gold Futures speculations on output outlook in international and domestic markets, metal traders said.
Slower pace of short term and long term trading also put metal price in tight bracket. Gold remained down by $3 an ounce to close at $1,268 an ounce in international market while domestic metal closed at Rs 49,796 per tola, down by Rs 97 per tola, metal traders said. In grammage per ten grams term, gold closed at Rs 42,738 per ten grams, witnessing Rs 83 per ten grams decline.
Nonappearance of hedgers, leading dealers and importers in the market besides less than normal demand on average put metal’s general prices in depression, metal traders said.
Major currencies witnessed some correction that has also lured investors to take positions, metal traders said.
The correction is set to be short-lived as buying from long-term investors would witness some improvement in price, they opined. The price of gold is an amalgam of diverse and changing influences, from currencies to jewellery, from investors to speculators.
The low demand of yellow metal in international and domestic markets and downward correction in Futures put metal prices depressed while hedgers consolidated their long positions by making forward deals.
However 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 with liquidity remained busy in making forward deals.
The gold speculators took some cautious steps in order to minimize chances of any big fall in price in coming days. The secondary 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.