Gold price drops by Rs300 per tola

KARACHI: Gold rates in the local market slashed by Rs300 to stand at Rs85,900 per tola on Thursday, ARY News reported.

Similarly, the rate of 10 grams of yellow metal decrease by Rs257 to Rs73,645.

Meanwhile, in the global market, gold prices held steady on Thursday, supported by concerns that U.S. legislation on Hong Kong could increase tensions between the United States and China and delay an interim trade deal.

Spot gold was little changed at $1,471.02 per ounce by 0458 GMT. U.S. gold futures were down 0.2% at $1,471.20.

“The main driver in gold currently is the uncertainty about the trade deal. There is the possibility that the deal might not be completed this year, so that is a key support factor,” said John Sharma, an economist with National Australia Bank.

Completion of a “phase one” trade deal could slide into next year, trade experts and people close to the White House said.

The protracted trade dispute has pushed the precious metal, considered a safe asset in times of political and economic uncertainty, about 14% higher this year.