KARACHI: Gold prices fell by Rs150 to Rs88,000 per tola in the local market on Saturday, according to media reports. The rate of 10 grams gold was down Rs129 to Rs75,445. Global gold rates, however, saw a $2 increase today as the yellow metal was traded at $1507.
Yesterday, gold fell 1% as upbeat remarks from Federal Reserve Chair Jerome Powell and improved risk appetite offset a weaker-than-expected U.S. nonfarm payrolls report, putting bullion on track for a second straight weekly loss, according to a report.
Spot gold was down 0.7% to $1,508 per ounce at 02:38 p.m. EDT (1838 GMT), after falling more than 1% earlier in the session. U.S. gold futures settled down $10 at $1,515.50.
The U.S. Labor Department’s monthly employment report showed job growth slowed more than expected in August, with retail hiring declining for a seventh month.
Powell called the jobs report consistent with a quite strong labor market, in remarks made at a panel discussion in Zurich, adding that despite trade uncertainties he did not foresee or expect a U.S. recession.
“The sell-off in gold was mainly due to the slightly optimistic tone Powell delivered throughout the session. He was pointing out that the U.S. economy was still performing well. Markets were expecting it (speech) to be slightly dovish,” said Edward Moya, senior market analyst with OANDA.
“The overall longer-term outlook for gold, however, remains strong and it’s going to be slightly choppy going into the rate decision in mid-September,” Moya said.