Gold price falls in Pakistan as global prices decline

ISLAMABAD: Gold prices fell sharply in Pakistan on Wednesday, with the price of one tola declining by Rs3,100 as the precious metal came under pressure in international markets.

According to the All-Pakistan Gems and Jewellers’ Sarafa Association (APGJSA), the price of gold fell to Rs434,436 per tola from Rs437,536 a day earlier.

The price of 10 grams of gold decreased by Rs2,658 to Rs372,458.

The price of silver also declined by Rs100 per tola to Rs6,488.

Gold prices had remained unchanged on Tuesday after rising by Rs1,200 per tola on Monday.

Gold falls in global market

According to Reuters, spot gold fell nearly 1% on Wednesday as the US dollar strengthened and investors awaited the release of minutes from the Federal Reserve’s September meeting for clues about the future path of interest rates.

Spot gold was down 0.98 per cent at $4,122.73 per ounce by 0905 GMT, while US gold futures for December delivery fell 0.91% to $4,149.

The dollar index gained 0.4 per cent, making dollar-denominated gold more expensive for buyers holding other currencies.

Rising US Treasury yields also weighed on the non-yielding asset.

Investors are closely watching the Fed minutes for indications about the central bank’s approach to interest rates. Higher interest rates generally reduce the appeal of gold because the precious metal does not pay interest.

Despite the recent pressure, geopolitical tensions, high government debt, inflation concerns and continued central-bank demand are providing support to gold prices, Reuters reported.

Oil prices rise above $100

Meanwhile, oil prices climbed on Wednesday, with Brent crude trading above $100 a barrel amid concerns over potential disruptions to global supplies.

Reuters reported that Brent futures rose $1.22 to $101.80 a barrel, while US West Texas Intermediate (WTI) crude gained 46 cents to $89.90.

The rise was driven by escalating geopolitical tensions and concerns over possible supply disruptions in the Middle East, while weather-related risks in the Gulf of Mexico added to market uncertainty.

Higher energy prices could add to global inflationary pressures and complicate central banks’ efforts to bring inflation under control.