Pakistan witnesses sharp drop in gold prices

KARACHI: Gold prices in Pakistan fell by Rs5,100 per tola on Friday, taking the price of 24-karat gold to Rs420,536, according to the All Pakistan Gems and Jewellers’ Association.

The price of 10 grams of gold also declined by Rs4,373 to Rs360,541.

Gold prices had remained unchanged in the domestic market on Thursday, with 24-karat gold selling at Rs425,636 per tola and Rs364,914 per 10 grams, according to rates reported by the association.

The decline in local prices came as gold weakened in the international market. Reuters reported that spot gold fell around one per cent on Friday to about $3,980 per ounce, its lowest level since July 17.

Stronger-than-expected US economic growth and accelerating inflation strengthened expectations that the Federal Reserve could raise interest rates in December, weighing on the precious metal, which does not offer interest.

Higher interest rates generally make non-yielding assets such as gold less attractive to investors.

Gold prices in Pakistan are influenced by international bullion rates and movements in the rupee-dollar exchange rate, alongside local market conditions.