KARACHI: Gold dropped Rs400 to Rs94,750 per tola after trading at Rs95,150 per tola. As per the Karachi Sarafa Association, gold prices checked in at Rs81,233 per 10 grams on Wednesday after losing Rs 343 over the previous trade session.
Gold prices fell following a ten-day rally as traders moved to book profits despite global equities heading towards a downturn in wake of coronavirus concerns. Analysts believe that the decline in gold prices is due to profit-taking after the precious metal hit a more than seven-year high this week.
They said the metal had entered a dry powder positioning, moving its position off the charts. This holds the possibility of triggering a market reversal.
With the rally falling short of the $1,659 resistance level, a breakthrough beyond would trigger a bullish signal into the market.
As new coronavirus cases emerge, equities are facing a slump and so is oil. Analysts believe that after profit-taking, gold is likely to witness an upward trend.