Gold prices remain unchanged in Pakistan despite global decline

KARACHI: The gold price in Pakistan remained unchanged on Monday, with 24-karat gold being sold at Rs239,400 per tola, according to the Karachi Sarafa Association.

The price for 24-karat gold per 10 grammes stood firm at Rs205,247, consistent with the previous trading session. Similarly, 22-karat gold was priced at Rs188,143 per 10 grammes.

The domestic silver market also saw no movement, with 24-karat silver being sold at Rs2,750 per tola and Rs2,358 per 10 grammes.

On the international front, spot gold held near $2,296 an ounce. This comes after a significant drop on Friday when gold plunged by 3.5 per cent, marking its largest decline since August 2021. Silver also saw a steep decline, tumbling by 7 per cent.

Federal Reserve officials have indicated that more evidence is needed to show inflation is moving towards the central bank’s 2 per cent target before they can consider rate cuts.

Investors are closely watching for signs of a soft economic landing that would justify such cuts. Typically, lower borrowing costs are beneficial for gold, which does not yield interest.

Despite reaching a record high above $2,450 an ounce, gold has traded within a relatively narrow range due to uncertainty surrounding the Federal Reserve’s interest rate policies. Currently, swap traders are not fully pricing in a rate cut before December.

Gold’s decline on Friday was also influenced by data showing that China’s central bank did not purchase any gold last month, ending an 18-month buying spree that had significantly bolstered the precious metal’s rally.

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