Gold Price Drops in Pakistan

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Gold price registered a drop in Pakistan despite a nominal hike in international market, ARY News reported on Monday.

According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) dropped by Rs1,500 per tola to settle at Rs233,000.

The price of 10-gram gold dropped by Rs1,286 to settle at Rs99,760.

In the international market, the gold price witnessed a nominal hike of $1 to settle at $1,915 per ounce.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation.

Earlier in the month, gold prices held near three-week lows after strong US private payrolls data suggested the economy could avoid a recession, fuelling bets of more monetary policy tightening and, in turn, boosting the dollar and Treasury yields, according to Reuters.

Spot gold was little changed at $1,936.07 per ounce by 0741 GMT, having hit its lowest since July 11. U.S. gold futures fell 0.2% to $1,971.90.

“This is a buying opportunity, though some further short-term volatility is possible, especially as bond yields are expected to continue to climb,” said Clifford Bennett, chief economist at ACY Securities.

“The easy run for gold is over,” Bennett said, adding that a strengthening dollar is weighing on prices.

The U.S. dollar index rose to a four-week peak and benchmark 10-year Treasury yields were at their highest since November after data on Wednesday showed U.S. private payrolls rose more than expected last month.

Source: Ary News