By Faryal Najeeb
KARACHI: Gold prices further declined by Rs429 to Rs20,228 per 10 grams on Monday following a decline in the international bullion market as oil slumped by over $2 to a 17-month low, lowering the yellow metal’s appeal as a hedge against inflationary pressures.
Local market dealers of the yellow metal were delighted by the consistent plunge in gold prices as they hoped that declining gold prices would encourage consumers to return to more gold purchasing.
Mohammad Kamran of KDA gold market said that though gold values were not as low as in previous months, but the continuously reducing prices were like a “breath of fresh air after several weeks of tension”.
He said the decline had come “at the right time as the wedding season is upon us and therefore we are now prepared to start afresh with better packages and latest designs”. Kamran further stated that gold dealers had been desperately waiting for this break as most had feared for their business survival.
In the international bullion market, the precious yellow metal declined by US$26 to $709 losing more than 3 per cent on Monday as equity markets plunged, with the latest series of government interventions not enough to stem fears about global recession.
Source: The News, 28/10/2008