Gold prices in Pakistan moved lower on Monday, tracking losses in the international market and ending a recent upward trend.
In the local market, the price of gold per tola dropped by Rs3,200 to close at Rs523,762. The rate for 10 grams also fell by Rs2,743, settling at Rs449,041, according to figures released by the All Pakistan Gems and Jewellers Sarafa Association. The fall came after Saturday’s sharp rise, when gold had climbed by Rs7,000 per tola to reach Rs526,962.
Silver prices also followed the same direction. The metal lost Rs55 during the day, with the per tola rate closing at Rs8,164.
Global pressure weighs on prices
In the international market, gold declined by $32 to reach $5,010 per ounce, including a premium of $20. Analysts linked the fall to light trading activity as major markets in the US and China remained closed due to public holidays. Some traders also booked profits after gold recorded a strong jump of about 2.5 percent in the previous session.
Spot gold slipped 0.9 percent to $4,997.59 per ounce in early trading, while US gold futures for April delivery dropped 0.6 percent to $5,017.20 per ounce. Market analysts said the metal gave back some of its recent gains due to a lack of fresh positive triggers and thinner trading conditions.
Recent US inflation data also shaped market sentiment. Consumer prices rose 0.2 percent in January, slightly below expectations. Officials from the US central bank signalled that interest rates could fall later this year, though services inflation remains high. Investors expect the Federal Reserve to keep rates unchanged at its next meeting in March, while still anticipating rate cuts in the months ahead.
Gold trend during February
Gold prices have shown sharp swings throughout February. On February 2, the price fell heavily by Rs21,500 per tola to Rs490,362, followed by a strong rebound of Rs24,000 the next day. The upward move continued until February 4, when gold reached Rs529,162 per tola.
However, the market turned volatile again. Prices dropped sharply on February 6, rose on February 7, and continued to fluctuate in the following sessions. After remaining unchanged on February 12, gold fell on February 13 before rising again on February 14. Monday’s decline now reflects renewed pressure from the global market.
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