Gold prices continued to fall in Pakistan on Monday, giving some relief to buyers after a sharp decline in recent days, as weakness in international markets spilled over into the local market.
According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs3,094 per tola to settle at Rs452,222.
The price of 10 grams of gold also moved lower, falling by Rs2,785 to Rs386,987.
The latest decline follows a much steeper drop recorded on Saturday, when gold prices plunged by Rs12,489 per tola. The back-to-back losses have pulled local gold rates significantly below the record highs seen earlier this year.
Silver prices also followed the same trend. The price of silver fell by Rs94 per tola and closed at Rs7,173.
International market weighs on local rates
The drop in Pakistan’s gold market came after international gold prices extended their losses. The global benchmark price declined by $30 to $4,297 per ounce, including a premium of $20.
In international trading, spot gold slipped further on Monday and touched its lowest level in more than two months. Analysts linked the decline to growing expectations that the US Federal Reserve could raise interest rates later this year following stronger-than-expected economic data.
A robust US jobs report has strengthened the view that the American economy remains resilient, reducing pressure on the central bank to cut rates. Investors are increasingly betting that policymakers could instead tighten monetary policy if inflation remains elevated.
Higher interest rates tend to make gold less attractive because the precious metal does not provide any yield or interest income. Rising US Treasury yields have also added pressure on bullion prices.
At the same time, tensions in the Middle East remain in focus after Israel reportedly carried out strikes on military targets in Iran. The renewed conflict pushed oil prices sharply higher, raising concerns that inflation could remain stubbornly high in the months ahead.
Market participants are now closely watching signals from the Federal Reserve. Expectations of a possible rate increase before the end of the year have grown, adding to uncertainty in the gold market.
For Pakistani consumers, lower gold prices may provide a better opportunity for jewellery purchases and wedding-related buying. However, traders say future price direction will largely depend on developments in global markets, particularly US interest rate decisions and geopolitical tensions.
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