Gold prices in Pakistan experienced a decline despite a slight increase in the international market, as reported by ARY News on Monday.
The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) shared that the price of 24-carat gold dropped by PKR 1,500 per tola, settling at PKR 233,000. Similarly, the cost of 10 grams of gold decreased by PKR 1,286, reaching PKR 99,760.
Conversely, the global gold price saw a minor rise of $1, reaching $1,915 per ounce.
Recent fluctuations in Pakistan’s gold rate are attributed to ongoing political and economic uncertainty, along with high inflation.
Earlier this month, gold prices hovered near a three-week low due to robust US private payrolls data suggesting the economy’s resilience. This led to speculations about tighter monetary policies, strengthening the dollar and Treasury yields, according to Reuters.
Spot gold remained relatively stable at $1,936.07 per ounce, touching its lowest point since July 11. Meanwhile, US gold futures saw a 0.2% decline, reaching $1,971.90.
Clifford Bennett, the chief economist at ACY Securities, mentioned that despite potential short-term volatility, this presents a buying opportunity. He noted that the era of easy gains for gold might be ending, primarily due to the dollar’s strengthening impact on prices.
The US dollar index reached a four-week peak, and 10-year Treasury yields were the highest since November following data indicating stronger-than-anticipated US private payroll growth.
In conclusion, the gold market in Pakistan experienced a drop in prices despite a slight rise internationally. The reasons for these fluctuations include economic uncertainty and inflation. The gold market’s recent dynamics were impacted by US economic data, contributing to changes in global gold prices.
