Gold prices in Pakistan fell on Monday, tracking a decline in the international market as stronger US jobs data raised expectations of higher interest rates.
According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell Rs2,400 per tola to Rs463,136.
The price of 10-gram gold also dropped Rs2,058 to Rs397,064.
The decline came after gold prices fell in the international market. The global rate was down $24 at $4,406 per ounce.
Gold had also lost ground in the local market on Saturday, when the price fell Rs3,600 to Rs465,536 per tola.
Silver prices moved lower as well. The price of silver fell Rs39 to Rs7,059 per tola.
Global gold prices
In the international market, gold prices slipped on Monday as investors assessed the impact of stronger US employment data on the Federal Reserve’s interest rate outlook.
Spot gold was down 0.2 percent at $4,421.04 per ounce by 8:35am GMT, while US gold futures for December delivery fell 0.2 percent to $4,466.90. Trading remained light because of a US holiday.
Ole Hansen, head of commodity strategy at Saxo Bank, said gold and silver had extended their declines after Friday’s strong US jobs report pushed bond yields higher and strengthened expectations of a Fed rate hike.
US data showed that job growth accelerated sharply in August, while the unemployment rate remained at 4.1 percent.
Markets now see a 58 percent chance of a rate hike at the Federal Reserve’s September 16 meeting, up from 50 percent before the jobs report, according to the CME FedWatch Tool.
Investors are now waiting for fresh inflation figures. US producer price data is due on Thursday, followed by consumer price data on Friday.
Higher interest rates can weigh on gold because the precious metal does not offer investors regular returns. This makes it less attractive when yields on interest-bearing assets rise.
Meanwhile, concerns over tensions around shipping routes and the Strait of Hormuz have kept oil prices elevated, adding another layer of uncertainty to global markets.
Among other precious metals, spot silver fell 0.2 percent to $66.06 an ounce, while platinum rose 0.3 percent to $1,825.21 and palladium gained 1.1 percent to $1,401.84.
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