Gold prices finally ease in Pakistan after record-breaking rally

KARACHI: After days of record-breaking highs that left many wondering when the rally would stop, gold prices in Pakistan finally showed signs of cooling on Thursday, tracking a similar downtrend in the international market.

According to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell by Rs4,100 to settle at Rs384,000. Likewise, the price of 10-gram gold dropped by Rs3,515 to reach Rs329,218. The decline comes a day after local prices held steady at Rs388,100, which itself followed a streak of sharp gains that pushed gold to unprecedented levels.

This easing marks the first notable pullback in nearly a week, as buyers and investors across the country had watched the yellow metal surge to fresh highs almost daily since the start of September.

Global prices pull back but remain near record

The dip in local prices followed a similar trend in the international market, where gold edged lower but remained well above the $3,600 mark. Spot gold was seen trading around $3,629.23 per ounce by 0811 GMT, down 0.3 percent on the day.

US gold futures for December delivery also slipped 0.4 percent to $3,666.70. Earlier in the day, spot gold had steadied near $3,636.59 per ounce as of 0233 GMT, while bullion touched a record $3,673.95 just two days ago.

Analysts say a modest recovery in the US dollar and profit-taking by investors have put slight pressure on gold. The US dollar index rose 0.2 percent to a near one-week high against major currencies, making dollar-priced gold more expensive for overseas buyers.

“Gold seems to be slightly pressured by a stabilising dollar and profit-taking today. Nevertheless, the precious metal remains firmly bullish above the psychological $3,600 level, with yesterday’s surprise drop in US producer prices limiting the downside,” said Lukman Otunuga, senior research analyst at FXTM.

US producer prices unexpectedly fell in August, driven by lower trade services margins and modest increases in goods costs. This softer-than-expected data has reinforced market expectations that the US Federal Reserve could cut interest rates in its meeting next week. Investors are now watching closely for US consumer inflation figures due later in the day, which could further influence gold’s direction.

A look back at September’s wild ride

Here’s how gold prices in Pakistan have moved so far in September:

Date	Gold price (per tola)	Change
September 1	Rs370,700	Up by Rs3,300
September 2	Rs370,700	Unchanged
September 3	Rs376,700	Up by Rs6,000
September 4	Rs376,700	Unchanged
September 5	Rs377,900	Up by Rs1,200
September 8	Rs384,000	Up by Rs6,100
September 9	Rs388,100	Up by Rs4,100
September 10	Rs388,100	Unchanged
September 11	Rs384,000	Down by Rs4,100

The pullback on Thursday stands out because of the rapid gains gold has posted throughout September. The month opened on September 1 with gold per tola surging to Rs370,700 after a Rs3,300 jump. By September 3, prices had leapt to Rs376,700 following a massive Rs6,000 rise in a single day. The rally continued, pushing prices to Rs377,900 on September 5, then Rs384,000 on September 8, and a record Rs388,100 on September 9.

Even when prices paused on September 10, they remained at peak levels, holding steady at Rs388,100. Thursday’s fall to Rs384,000 finally gave some breathing room to the market, though many jewellers say demand has remained subdued as buyers have been wary of the sky-high rates.

Meanwhile, silver prices also edged lower in the local market, falling by Rs32 to Rs4,326 per tola, according to APGJSA.

For now, market watchers say gold remains on a bullish track globally, and any further movement will hinge on the upcoming US inflation data and the Federal Reserve’s next policy move. Until then, Pakistani buyers will be keeping a close eye on prices, hoping the recent drop might offer some relief from what has been a relentless rally.

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Web Desk