Key Points
- Gold sheds Rs2,000 per tola in domestic market amid global decline
- 24-karat gold now priced at Rs431,862 per tola; 10-gram rate at Rs370,252
- International gold eases to $4,095 per ounce as dollar strengthens
- Silver price also drops by Rs43 to Rs5,067 per tola
ISLAMABAD: The gold in Pakistan extended its shedding trend on Friday, tracking losses in the international bullion market.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold fell by Rs 2,000 per tola, settling at Rs 431,862 in the local market.
Similarly, the price of 10-gram gold dropped by Rs 1,714, closing at Rs 370,252, according to the APGJSA data. On Thursday, gold had already slipped Rs3,500 per tola to close at Rs433,862, reflecting continued downward momentum over the week.
International market movement
Globally, gold prices also weakened as the dollar strengthened and investors trimmed positions ahead of a key US inflation report. The international gold rate stood at $4,095 per ounce (including a $20 premium), marking a $20 decline during the day, according to APGJSA.
Reuters reported that spot gold was also down 0.2% at $4,118.68 per ounce as of 0315 GMT, while US gold futures for December delivery slipped 0.3% to $4,133.40 per ounce. Bullion has fallen nearly 3% this week, heading for its biggest weekly drop since mid-May.
Analysts attributed the weakness to profit-taking and a firmer US dollar, which made gold more expensive for holders of other currencies. They added that traders were adjusting positions before the release of US consumer price data, which could influence the Federal Reserve’s policy outlook.
Silver also declines
In tandem with gold, silver prices dropped by Rs 43 per tola, reaching Rs 5,067, according to APGJSA.
Outlook
Market observers have said that local bullion prices are expected to remain volatile, driven by fluctuations in the global market and movements in the Pakistani rupee. They noted that the precious metal may regain momentum if inflation concerns resurface or the US dollar weakens in the coming weeks.
