After witnessing an upward trend for three consecutive sessions, gold prices in Pakistan saw a decline on Friday, following a similar dip in international markets. In the local market, the Gold Per Tola In Pakistan fell by Rs300, bringing the rate down to Rs276,700 from a day earlier.
PRICE OF 10-GRAM GOLD ALSO DECLINES
Likewise, the price of 10-gram gold in Pakistan dropped by Rs256, settling at Rs237,226. These rates were confirmed by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), which monitors daily price movements in the local bullion market.
GOLD PRICES HAD SURGED THE DAY BEFORE
On Thursday, Gold Per Tola In Pakistan had increased by Rs1,500, reaching an all-time high of Rs277,000. This marked a significant rise before the decline on Friday.
GLOBAL MARKET IMPACTS LOCAL PRICES
Meanwhile, in the international market, gold prices also decreased on Friday. According to APGJSA, the price per ounce of gold stood at $2,663, including a premium of $20, and dropped by $2 during the day.
SILVER PRICES REMAIN UNCHANGED
While gold prices fluctuated, silver rates stayed stable. The price of silver per tola remained at Rs3,050, unchanged from the previous day.
EXPERTS CITE GLOBAL FACTORS FOR PRICE VOLATILITY
Experts believe that the recent spike in gold prices is primarily due to rising geopolitical tensions in the Middle East, anticipated Federal Reserve rate cuts, and increasing demand from key markets like China and India.
GOLD PRICE DIPS AMID US DOLLAR STRENGTH, REMAINS SUPPORTED BY FED RATE CUT EXPECTATIONS
Gold prices (XAU/USD) encountered some selling pressure on the last day of the week, retreating from the all-time peak of $2,685-$2,686 reached on Thursday. This dip in the global gold price also reflects on the Gold Per Tola In Pakistan, which has been tracking international trends closely. The primary reason for the decline is the resurgence of the US Dollar (USD), which typically weakens demand for the precious metal.
CHINA’S STIMULUS MEASURES ALSO WEIGH ON GOLD
In addition to USD strength, China’s announcement of new stimulus measures has buoyed global markets, encouraging a more risk-on sentiment. This shift has pulled investments away from safe-haven assets like gold, contributing to the downward pressure on the Gold Per Tola In Pakistan and international prices.
FED RATE CUT EXPECTATIONS TO SUPPORT GOLD PRICE
However, expectations of a more aggressive policy easing from the US Federal Reserve (Fed) may prevent significant losses for gold. Despite the uptick in USD buying, traders remain cautious as the Fed is anticipated to lower interest rates, which could limit further drops in gold prices.
GOLD PRICES BOLSTERED BY MIDDLE EAST GEOPOLITICAL RISKS
Another factor providing support to gold is the ongoing geopolitical tension in the Middle East. With the risk of further escalation, investors continue to view gold as a hedge, offering a buffer for the commodity and stabilizing the Gold Per Tola In Pakistan despite the recent pullback.
US PCE PRICE INDEX AWAITED FOR FURTHER MARKET DIRECTION
Traders are also eyeing the upcoming release of the US Personal Consumption Expenditure (PCE) Price Index for additional clues on inflation trends, which could further influence the Fed’s decision-making and, by extension, gold prices.
