Gold prices declined in Pakistan on Monday, tracking losses in the international market as a stronger US dollar weighed on global bullion prices and encouraged profit-taking after last week’s gains.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs2,400 per tola, bringing it down to Rs437,436.
The price of 10 grams of gold also moved lower, dropping Rs2,058 to Rs375,030.
The latest decline follows a weaker trading session on Saturday, when gold had already lost Rs1,100 per tola to settle at Rs439,836.
Silver prices also moved lower. The price of silver declined by Rs37 to Rs6,679 per tola in the local market, reflecting the softer trend seen in precious metals worldwide.
In the international market, gold prices also came under pressure. The global gold rate, used by local traders with an added premium of $20, fell by $24 to $4,150 per ounce.
Spot gold was trading at $4,165.21 per ounce during early trade, down 0.2 percent after touching its highest level in about two weeks earlier in the session. At the same time, US gold futures for August delivery were quoted at $4,177.20 per ounce.
Market analysts said the recovery in the US dollar made gold more expensive for buyers using other currencies, reducing demand and putting pressure on prices.
Tim Waterer, Chief Market Analyst at KCM Trade, said gold continues to face resistance from the stronger US dollar. He added that investors are now waiting for the minutes of the US Federal Reserve’s latest policy meeting, hoping for fresh clues about the direction of interest rates.
The focus will be on whether policymakers continue to support higher borrowing costs or show signs of becoming more comfortable with future rate cuts.
Gold had gained more than 2 percent last week after weaker than expected US jobs data suggested the labour market was slowing. That report reduced concerns about persistent inflation and lowered expectations of another near term interest rate increase.
According to the CME FedWatch Tool, traders now see about a 56 percent chance of a US rate hike in September, compared with more than 60 percent before the latest employment figures.
Lower interest rates are generally considered supportive for gold because the metal does not offer interest income, making it more attractive when borrowing costs fall.
Among other precious metals, spot silver slipped 0.2 percent to $62.28 per ounce, while platinum and palladium posted modest gains during Monday’s trading.
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