Gold price falls further amid global decline

KARACHI: Gold prices in Pakistan continued their downward trend on Tuesday, mirroring a decline in the international market.

According to the All Pakistan Gems and Jewellers Association (APGJA), the price of gold per tola dropped by Rs2,100, bringing it to Rs274,900. Similarly, the price of 10-grams gold decreased by Rs1,800, settling at Rs235,682.

This marks the second consecutive day of falling gold prices. On Monday, the per tola rate had dropped by Rs800 to Rs277,000, while the price of 10 grams fell by Rs687 to Rs237,482.

The consecutive decline in the gold price was a result of the decreasing gold prices internationally, witnessing a drop by $21 per ounce, reaching $2,637.

Also read: Pakistan’s crackdown on illegal forex trade spurs 34 per cent rise in remittances

Earlier on Tuesday, the Pakistan Stock Exchange (PSX) dropped 1,300 points moments into opening, and went to 114,868.63 points, after opening at 116,169.41 points. Soon after, the benchmark KSE-100 index recovered to 116,088.61 points.

However, that recovery proved to be short-lived again, and by 10 AM, the KSE-100 had once again fallen to 115,849.30 points. The volatility experienced by the bourse in the early trading hours of Tuesday seems to be a correction of the market after multiple consecutive sessions of bullish momentum.

The market had been growing on the expectations of the State Bank of Pakistan (SBP) reducing the policy rate, which the central bank did yesterday. The policy rate has been slashed by 200 basis points – a move that the SBP had been delaying in order to control inflation. With that out of the way, the PSX now found time to correct some of the heat and adjusted the overall growth.

On the other hand, Bitcoin surpassed $107,000 again on Tuesday after President-elect Donald Trump reiterated that he plans to create a US bitcoin strategic reserve similar to its strategic oil reserve, stoking the enthusiasm of crypto bulls.

Bitcoin, the world’s biggest and best known cryptocurrency, extended gains to a session high of $107,148 and was most recently at $106,877, up 5.43 per cent from late Friday. The No. 2 digital currency ether was up 1.85 per cent at $3,975.70.