Gold prices fall in Pakistan, reversing previous sessions’ gains

KARACHI: Gold prices in Pakistan fell on Thursday after a one-day rebound, with the price of 24-karat gold declining by Rs600 per tola to Rs462,336, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The price of 10-gram gold fell by Rs515 to Rs396,378.

The decline came a day after gold prices rose Rs800 per tola, partly recovering losses recorded during the previous two sessions.

On Wednesday, gold had reached Rs462,936 per tola, while the 10-gram rate stood at Rs396,893.

Gold had fallen Rs2,400 per tola on Monday and another Rs1,000 on Tuesday, when the price stood at Rs462,136.

The combined decline over the two sessions was Rs3,400. Wednesday’s Rs800 increase therefore recovered only part of those losses.

The latest move leaves the domestic gold price Rs600 below Wednesday’s level and about Rs3,200 below Monday’s price of Rs463,136.

Global market

International gold prices were also under pressure on Thursday, with spot gold falling as a stronger US dollar and higher Treasury yields reduced demand for the non-yielding asset.

Reuters reported that spot gold was down 0.4 per cent at around $4,385.40 an ounce, while US gold futures fell 0.7 per cent to $4,427.80.

Investors were awaiting US inflation data for clues about the Federal Reserve’s interest-rate path.

Higher interest rates and bond yields tend to weigh on gold because bullion does not pay interest, while a stronger dollar makes the metal more expensive for holders of other currencies.

Gold prices have also remained sensitive to geopolitical developments, with continuing tensions in the Middle East contributing to volatility in global bullion markets. Recent movements have also been influenced by changing expectations over US monetary policy and incoming economic data.

In Pakistan, domestic gold prices generally track international bullion rates while also reflecting movements in the rupee-dollar exchange rate.

Changes in global interest-rate expectations, geopolitical uncertainty and investor demand for safe-haven assets can also influence local prices.