Search

ad

Gold price sinks to more than 5 year low

07:38 PM | 20 Jul, 2015
Gold price sinks to more than 5 year low
LONDON (APP) - Gold slumped Monday to the lowest point in nearly five and a half years, weighed down by reports of massive selling in China, dealers said.

The precious metal tumbled to $1,072.35 in Asian deals, striking the lowest point since February 11, 2010, and breaching the key psychological barrier of $1,100.

"The price slide was triggered by high selling volumes on the gold exchange in Shanghai," said Commerzbank analysts in a research note to clients.

Dealer Nick Rose, at trading firm TradeNext, agreed that the latest price slump was sparked by Chinese sellers offloading large quantities of the metal.

Gold had already slid on Friday on the back of the strong dollar, which soared last week after US Federal Reserve chief Janet Yellen reaffirmed expectations of an interest rate hike by year-end.

A stronger greenback makes dollar-denominated commodities more expensive for buyers using weaker currencies. That tends to dent demand and, in turn, pull prices lower.

Prices were hit Friday by news that China's official gold reserves rose almost 60 percent over the past six years, according to the first official data on the subject since 2009.

The central People's Bank of China (PBoC) said bullion holdings rose 57 percent to 1,658 tonnes as of the end of June, from 1,054 tonnes in April 2009, the last time a figure was released.

"Markets have commenced the week with an unexpected start following a spectacular drop in gold during the Asian session that sent the yellow metal to a new milestone five-year low," added analyst Jameel Ahmad at traders FXTM on Monday.

"Gold dropping so sharply is a surprise and while the reports that China gold reserves were half the expected level might have inspired additional selling pressure, it is the repeated comments of commitment from the Federal Reserve that they will begin raising US interest rates at some point this year that have continuously pressured gold in recent months."

Other precious metals also forged multi-year lows on Monday.

Silver dived to $14.54 per ounce, the lowest level in nearly six years.

Platinum sank to a six-year trough at $946.25 an ounce, while sister metal palladium slid to $603.95 per ounce -- last witnessed on November 11, 2012.

The author is working as Editor Digital Media for Daily Pakistan and can be reached @ItsSarfrazAli.

Advertisement

Pakistani rupee exchange rate against US dollar, Euro, Pound and Riyal - 20 Feb 2024

Pakistani currency remained largely stable against US dollar and other currencies in the open market on February 20, 2024 (Tuesday).

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.05 for buying and 282.1 for selling.

On Tuesday, Euro stands at 301 for buying and 304 for selling while British Pound rate stands at 352.4 for buying, and 355.4 for selling.

UAE Dirham AED hovers at 76.55 whereas the Saudi Riyal saw slight increase, with new rates at 74.2.

Today’s currency exchange rates in Pakistan - 20 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.05 282.1
Euro EUR 301 304
UK Pound Sterling GBP 352.4 355.4
U.A.E Dirham AED 76.55 77.25
Saudi Riyal SAR 74.2 75
Australian Dollar AUD 180 182
Bahrain Dinar BHD 743.12 751.12
Canadian Dollar CAD 206.5 208.5
China Yuan CNY 38.84 39.24
Danish Krone DKK 40.24 40.64
Hong Kong Dollar HKD 35.74 36.09
Indian Rupee INR 3.48 3.59
Japanese Yen JPY 2.10 2.18
Kuwaiti Dinar KWD 906.33 915.33
Malaysian Ringgit MYR 58.6 59.2
New Zealand Dollar NZD 170.1 172.1
Norwegians Krone NOK 26.43 26.73
Omani Riyal OMR 725.75 733.75
Qatari Riyal QAR 76.76 77.46
Singapore Dollar SGD 207 207
Swedish Korona SEK 26.85 27.15
Swiss Franc CHF 315.64 318.14
Thai Bhat THB 7.93 8.08

Advertisement

Follow us on Facebook

Follow us on Twitter

Sign up for Newsletter