Key Points
- Local gold per tola drops Rs 2,400 to Rs 388,600
- International spot gold slips after record high
- Dollar strength, profit-taking weigh on bullion
- Silver also declines in domestic market
ISLAMABAD: Gold prices fell in Pakistan on Wednesday, mirroring losses in the international market as profit-taking set in after bullion’s record highs earlier this week.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs 2,400 to settle at Rs 388,600, while the rate for 10 grams shed Rs 2,058 to Rs 333,161. Silver prices also weakened, with the per tola rate falling Rs 109 to Rs 4,387.
In the international market, spot gold eased 0.2% to $3,681.23 per ounce as of 0256 GMT, after touching a record $3,702.95 in the previous session. U.S. gold futures for December delivery were also down 0.2% at $ 3,718.90, Reuters reported.
Analysts told Reuters that a slight uptick in the U.S. dollar and profit-taking by investors contributed to the pullback. However, expectations of a Federal Reserve interest rate cut this month continue to underpin sentiment.
“After such a strong rally, some consolidation is natural,” one trader quoted by Reuters said, pointing to markets awaiting guidance from Fed Chair Jerome Powell on the pace of monetary easing.
Looking ahead, traders told Reuters that bullion is likely to remain supported above the $3,600-per-ounce level as investors anticipate the U.S. central bank’s policy shift, with attention fixed on the Fed’s move later in the week. Domestically, dealers said local prices will track the global trajectory, closely, with further volatility expected depending on the rupee-dollar parity.
