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Gold rate declines by Rs800 per tola in local market

Gold rate declines by Rs800 per tola in local market

Web Desk
Dec 27, 2024

KARACHI: Gold prices on the fifth trading day of the week fell after a decline was reported in international bullion rates.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), which releases gold rates daily, the price of 24-karat gold in Pakistan dropped by Rs800 per tola, reaching Rs273,200 per tola on Friday.

However, the price of silver in the country remained unchanged at Rs3,350 per tola in the local market.

It is worth noting that this decline comes after the precious metal experienced a loss of Rs1,400, bringing the price to Rs274,000 per tola in Thursday’s trading session.

According to the APGJSA, the price of gold in the international market was recorded at $2,600 per ounce after falling by $8.

Gold edged lower in light trading on Friday but was still poised for a weekly gain, as investors awaited cues on the US economy to anticipate the Federal Reserve’s interest rate path for 2025 and the incoming Donald Trump administration’s policies.

Spot gold fell 0.2 per cent to $2,630.28 per ounce, as of 0221 GMT. Bullion has gained 0.3 per cent so far this week.
US gold futures eased 0.2 per cent to $2,649.10.

“We are in a holiday lull, so price action is a little dull, with moves perhaps exaggerated by thin liquidity,” said Kyle Rodda, a financial market analyst at Capital.com.

“The (rate-cut) decision shook market confidence in the number of cuts likely to come next year, which acted as a headwind for gold.”

US jobless claims fell to a one-month low last week, data showed, indicating a strong labour market and potential pressure on the Fed to maintain interest rates.

After aggressively cutting rates in September and November, the Fed continued easing in December but hinted at fewer reductions in 2025.

Gold prices have surged nearly 28 per cent this year, reaching a record high of $2,790.15 on 31 October, driven by the Fed’s substantial rate cuts and escalating geopolitical tensions.