Gold prices receive significant decline in Pakistan

ISLAMABAD: Gold prices in Pakistan went on declining on Friday, the fourth consecutive session of falls this week, as prices followed weakness in the global market.

The price of 24-karat gold dropped by Rs1,000 on Friday to reach Rs357,100 per tola, as per the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA). The 10-gramme rate of 24-karat gold dropped by Rs858 to Rs306,155, and 22-karat gold was quoted at Rs280,652 per 10-gramme.

Prices of silver remained steady in the local market. The 24-karat silver cost Rs4,072 per tola and Rs3,491 per 10-gramme.

In global markets, spot gold inched higher to about $3,341 an ounce, $6.5 or 0.19 percent higher than the last session. Global prices were supported by a weaker dollar, but gains were capped as hotter US inflation readings doused hopes for a sizeable interest rate cut by the Federal Reserve in September.

Four-day downturn since Monday

With the fall on Friday, gold has lost Rs5,300 per tola in the last four trading days. Markets were shut on Thursday on the occasion of Independence Day, but falls were registered on all other days this week.

On Monday, the yellow metal dropped by Rs3,600 to Rs358,800 per tola. Then there was another Rs500 dip on Tuesday, bringing the price to Rs358,300. On Wednesday, it was relaxed by Rs200 to Rs358,100, before Friday’s Rs1,000 dip brought it to the current Rs357,100 mark.

Gold closed at Rs362,400 per tola last week, which means that it has corrected substantially during the course of this week. The domestic market has reflected the moves in international prices to a large extent, according to analysts, and these are under pressure owing to changing US monetary policy expectations.

While the correction has taken place, dealers point out that both global price fluctuations and exchange rate movements will continue to be drivers for gold prices in the coming days.