Gold prices drop by Rs1600 in Pakistan, Check latest rates inside

KARACHI: Pakistan gold prices fell on Friday, following the global trend in the wake of changing investor sentiments and the temporary diminution of geopolitical tensions.

The price per tola of gold slid by Rs1,595 to close at Rs357,000 in the domestic market, while the price of 10-gramme gold reduced by Rs1,368 to Rs306,069, quoting the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

This is after recording a lower fall a day before, when gold’s price per tola declined by Rs460 to Rs358,595.

Globally, also in gold prices, came losses as spot gold fell to $3,355.97 an ounce (plus a $20 premium), losing $16 on the day. US futures for gold also fell by 1 per cent to $3,372.20. The metal was set for a weekly loss of over 2 per cent, its worst in over a month.

Gold has been pressured by two factors, say analysts: the US Federal Reserve backing away from hopes for interest rate reductions this year, and a temporary allaying of concern about a US military response to tensions between Israel and Iran.

“Trump’s window of two weeks to decide on US participation in the Middle East war has brought some optimism that tensions could ease,” WisdomTree commodities strategist Nitesh Shah said. “That’s removed some of the urgency from safe-haven demand, and has helped prices for gold to ease.”

Silver also experienced a decline in local prices. The price per tola dropped by Rs24 to Rs3,796.

On the currency side, the Pakistani rupee gained fractionally against the US dollar. At interbank transactions, the rupee gained 0.04 per cent to hit Rs283.52 against the dollar at 10 am, gaining 12 paisas from Thursday’s close of Rs283.64.

A firmer dollar this week, rising 0.4 per cent and set for its best weekly performance in more than a month, has also weighed on gold, making it more expensive for gold buyers in other currencies.