KARACHI, Aug 12: Gold registered a decline of Rs1,071 per 10 grams in a single day on Tuesday. The prices of yellow metal fell to Rs19,714 from Monday’s rate of Rs20,785 in the local market.

Gold fell by Rs1,030 to Rs19,718 from Rs20,748 in Lahore and by Rs780 to Rs19,370 in Multan from Rs20,150 on Monday.

The yellow metal lost Rs1,250 per tola to close at Rs23,000 against Rs24,500 on Monday.

The massive fall in gold prices has been attributed to dollar’s rally against other currencies as experts said a stronger US currency makes commodities priced in dollars more expensive for holders of other currencies.

The gold prices have suffered erosion for the last couple of weeks. It hit an all-time-high of Rs22,414 per 10 grams in Karachi and $973 per ounce in the international market on July 22.

A trader said speculators had been busy in the international market pushing down the gold prices. The yellow metal is considered a safe haven and its consumption has increased substantially in the western countries.

He said that there had been a significant increase in investment in gold and its consumption had increased in jewellery and ornaments.

During the current year, domestic gold market experienced constant price hike due to mounting tension between the US and Iran over latter’s nuclear issue, which was followed by rising crude oil prices that also fuelled the price of yellow metal. Now the price of gold has declined as the oil rates have come down.

All Pakistan Supreme Council of Jewellers Association President Alhaj Haroon Rashid Chand told Dawn that the decline in gold prices was in line with the international market, which was due to falling crude oil prices and strengthening dollar.

He linked the devaluation of the rupee and a sharp fall in oil prices in the international market with the decline of the gold prices in the local market.

He said gold was selling at Rs18,550 per tola and Rs15,900 per 10 grams on December 24, 2007.

In the international market gold hit the lowest point for seven and a half months. The price of gold tumbled to $802.34 per ounce on Tuesday, the lowest point since December 21, 2007. The precious metal is down more than 20 per cent since hitting a record high of $1,030.80 on March 17 this year.