KARACHI: The price of 24-karat gold in Pakistan declined by Rs700 per tola on Thursday, bringing the new rate to Rs275,200, according to the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA). The 10-gram price also saw a decrease of Rs600, settling at Rs235,940, while 22-karat gold was quoted at Rs216,278 per 10-gram.
In contrast, silver prices in the domestic market remained steady, with 24-karat silver priced at Rs3,400 per tola and Rs2,915 per 10-gram.
Global Market Trends
Globally, spot gold edged higher, trading at $2,646 per ounce, a 0.33% increase from the previous session. Despite this slight gain, gold prices struggled for traction due to mixed signals in the international market.
- Geopolitical Uncertainty:
Concerns about US President-elect Donald Trump’s proposed tariffs and the ongoing Russia-Ukraine conflictsupported gold as a safe-haven asset. - US Economic Data:
- The Personal Consumption Expenditures (PCE) Price Index showed a year-on-year rise to 2.3% in October.
- The US economy expanded at a robust 2.8% annual pace in Q3, supported by strong consumer spending.
- Weekly unemployment claims dropped to 213,000, reflecting resilience in the labor market.
- Federal Reserve Outlook:
Prospects of a slowdown in interest rate cuts by the Federal Reserve (Fed), bolstered by the positive macroeconomic data, strengthened the US Dollar and US Treasury yields. This capped any meaningful upside for the non-yielding yellow metal.
Market Dynamics and Key Levels
From a technical perspective, gold prices faced resistance near the $2,650 zone globally, with the $2,600 level acting as a key support. Analysts suggest that a break below this mark could trigger a deeper correction toward $2,570, while upward movement beyond $2,658 could open the door to $2,700.
Domestic vs. Global Trends
The decrease in gold prices in Pakistan reflects a combination of international trends and currency stability. While global uncertainty continues to support gold’s safe-haven appeal, the rebound in the US Dollar and Treasury yields has introduced bearish pressure on the commodity.
