Gold prices fall from record high amid strong rupee

KARACHI: Gold prices fell in the local market on Wednesday as strength in the rupee against the dollar weighed on the yellow metal, dealers said.

Gold prices fell sharply by Rs7,800 after touching an all-time high in the previous day.

According to data released by All Sindh Saraf Jewellers Association, gold rates in the local market moved down to Rs124,200 per tola.

In the international market, gold rates decreased by $15 to $1,789 per ounce.

Price in the local market remained above by Rs2,000 per tola as compared with the international market rates, jewellers said.

One jeweller said that a sudden sharp decline in the rates was a result of rupee appreciation and a decline of gold prices in the international market.

In recent weeks gold prices in the international market were stable but the local market witnessed an unusual increase owing to the depreciation of local currency, which resulted in higher demand than supply in the local market.

Analysts said a stronger rupee hurt the safe-haven appeal of gold. They say that chances of an IMF deal this week also dented the appeal of gold in the local market. The gold is seen as a hedge against higher inflation.