Gold loses Rs700 per tola in Pakistan as global rates fall

KARACHI: Gold prices in Pakistan recorded a decline on Thursday following a decrease in the international market.

In the local bullion market, the price of gold per tola dropped by Rs700 and settled the day at Rs275,200.

This decline followed a rise of Rs1,600 per tola in Pakistan on Wednesday.

The international price of gold also fell on Thursday as the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the rate stood at $2,640 per ounce after witnessing a loss of $7.

The price of 10 grammes of gold in Pakistan was reported at Rs235,940 after a decrease of Rs600. This means that the per gramme rate has now dropped to Rs23,594 in the local market.

Silver prices remained stable as expected, holding steady at Rs3,400 per tola.

Internationally, gold rates slipped as the US dollar strengthened with investors weighing a number of economic reports that pointed to stalled inflation progress.

This suggests that the Federal Reserve may adopt a more cautious approach towards further interest rate cuts.

The dollar index was up 0.1 per cent, reducing gold’s appeal for holders of other currencies.

The market is focusing on the Fed’s rate cuts, with the latest Core Personal Consumption Expenditures (PCE) data suggesting slowing inflation, leading to expectations that the Fed’s policy next year might be less dovish than previously expected, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.

Meanwhile, the Fed’s struggle to bring inflation back to its 2 per cent target, combined with the possibility of higher tariffs under the upcoming Trump administration, may constrain the US central bank’s ability to implement rate cuts next year.

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