KARACHI: The Gold prices on Monday decreased by Rs150 per tola in the local market and currently trading at Rs85050. Likewise, the rate of 10 grams of yellow metal fell by Rs128 to Rs72,916.
Gold prices fell on Monday as investors turned to riskier assets on signs of economic growth following reports of an expanding Chinese factory sector and as a rising dollar reduced demand.
Spot gold was down 0.5% at $1,456.70 per ounce by 0802 GMT, having earlier touched its highest since Nov. 22. U.S. gold futures fell 0.7% to $1,463.
An unexpected expansion in factory activity during November in China, the world’s second-largest economy and biggest gold user, spurred investors into equity markets.
This followed official government data on Saturday that also showed an expansion.
“Positive data from China creates optimism that the Chinese market is improving, that gives people confidence to invest in riskier assets, and in turn, reduces the safe-haven demand for gold,” said Hareesh V, head of commodity research at Geojit Financial Services.