Gold prices hold steady in Pakistan after Thursday’s sharp decline

KARACHI: Gold prices in Pakistan remained unchanged on Friday after falling sharply a day earlier, with the price of a tola holding at Rs483,036 amid mixed signals in international bullion markets.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of one tola of gold remained unchanged at Rs483,036 on Friday.

The price of 10 grams of gold also stayed stable at Rs414,125.

The stability came a day after gold prices declined by Rs3,500 per tola on Thursday, when the price fell from Rs486,536 to Rs483,036.

The price of 10 grams had also dropped by Rs3,100 on Thursday to Rs414,125.

Gold prices in Pakistan are determined on a daily basis and are influenced by movements in international bullion markets, the rupee-dollar exchange rate and broader developments in global financial markets.

Gold edges higher in international market

In the international market, spot gold edged up 0.1 per cent to $4,607.47 per ounce, according to Reuters.

Gold has remained volatile this week, with prices touching a more than three-month high of $4,696.18 per ounce on Tuesday.

The rally came after the US Treasury announced measures aimed at supporting longer-term bonds, although the precious metal subsequently retreated from its weekly peak.

US gold futures were little changed at $4,661.20 per ounce.

Senior financial markets analyst Kyle Rodda said gold had maintained an overall positive trend in recent days and could potentially regain the $5,000-per-ounce level by the end of the year.

However, he said the outlook would depend largely on signals from the US Federal Reserve and any changes in monetary policy.

Interest rates remain key for gold

Gold prices are closely watched for signals from the US interest-rate environment. Higher interest rates generally reduce the appeal of non-yielding assets such as gold because the precious metal does not pay interest or dividends.

Conversely, expectations of lower rates can support gold by reducing the opportunity cost of holding bullion.

For Pakistani buyers, international price movements are only one factor determining local rates, with fluctuations in the rupee-dollar exchange rate also affecting the domestic price of gold.

With prices unchanged on Friday following Thursday’s decline, market participants are closely watching global interest-rate expectations and geopolitical developments for further direction.