Gold prices in Pakistan experienced a significant decline on Wednesday, with the price of one tola dropping by Rs3,100 due to pressure from falling international gold prices. The All-Pakistan Gems and Jewellers’ Sarafa Association (APGJSA) reported that the price of gold decreased to Rs434,436 per tola from Rs437,536 the previous day. Similarly, the price of 10 grams of gold fell by Rs2,658 to Rs372,458.
Silver prices also saw a reduction, falling by Rs100 per tola to Rs6,488. After remaining steady on Tuesday, gold prices had risen by Rs1,200 per tola on Monday before the recent drop.
On the global front, spot gold prices declined nearly 1% as the US dollar strengthened and investors awaited the Federal Reserve’s September meeting minutes for insights on future interest rate moves. By 0905 GMT, spot gold was down 0.98% at $4,122.73 per ounce, while US gold futures for December delivery fell 0.91% to $4,149. The dollar index increased by 0.4%, making gold more expensive for buyers using other currencies. Additionally, rising US Treasury yields pressured the non-yielding metal.
Investors are closely monitoring the Fed minutes for indications on interest rate policy, as higher rates typically reduce gold’s appeal due to its lack of yield. Despite recent declines, factors such as geopolitical tensions, elevated government debt, inflation concerns, and ongoing central bank purchases continue to support gold prices.
Meanwhile, oil prices rose on Wednesday, with Brent crude surpassing $100 per barrel amid fears of potential supply disruptions. Brent futures increased by $1.22 to $101.80 per barrel, while US West Texas Intermediate crude gained 46 cents to $89.90. The rise was driven by escalating geopolitical tensions and weather-related risks in the Gulf of Mexico, contributing to market uncertainty. Higher energy prices may intensify global inflationary pressures and complicate central banks’ efforts to control inflation.
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