Gold prices in Pakistan declined sharply on Monday, tracking losses in the international market, as rising tensions in the Middle East fuelled inflation concerns and strengthened expectations that major central banks could maintain tighter monetary policies for longer.
According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola dropped by Rs4,400 to settle at Rs471,762. Similarly, the price of 10 grams of gold fell by Rs3,773 to Rs404,459.
In the international market, spot gold fell 1% to $4,489.34 per ounce by 1:50 pm EDT (1750 GMT), after touching a two-week high on Friday, according to Reuters. US gold futures settled 1.9% lower at $4,506.30 per ounce. Market analysts attributed the decline to a stronger US dollar and profit-taking by investors after the recent rally.
Adnan Agar, Director at Interactive Commodities, said gold remained under pressure throughout the trading session. It touched a low of $4,447 and was later trading around $4,477. The day’s high was $4,550, he said.
Agar noted that developments related to the Middle East were influencing investor behaviour. “Following recent news that talks between Iran and the US have been suspended, the market has come under pressure and gold is reflecting that weakness,” he said.
Agar added that the precious metal could witness further downside before resuming its upward trajectory. “It appears that gold may first move towards the $4,100-$4,200 range before regaining momentum and advancing further,” he said.
Meanwhile, the Pakistani rupee appreciated by 0.01% against the US dollar in the interbank market, closing at 278.47 compared with 278.50 on Friday.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More
