Gold prices fell in Karachi’s local market on Monday, mirroring a slide in international bullion values. The decline came as a firm US dollar weighed on the precious metal, while investors awaited key American inflation data that may influence the Federal Reserve’s direction on rates.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) published the local figures. Silver also declined in the domestic market.
Karachi gold and silver rates drop on Monday
According to the APSGJA, the changes were as follows:
- 24-karat gold per tola: down Rs2,100 to Rs439,936
- 24-karat gold per 10 grams: down Rs1,800 to Rs377,174
- 22-karat gold per 10 grams: down Rs1,650 to Rs345,755
- Silver per tola: down Rs23 to Rs6,532
- Silver per 10 grams: down Rs19 to Rs5,600
In the global market, gold lost $21 to $4,174 an ounce, while silver shed $0.23 to reach $60.54 an ounce, the association said.
Firm dollar and Fed outlook weigh on bullion
The US dollar stood close to its highest point in 18 months on Monday, buoyed by caution linked to Middle East tensions and ahead of inflation figures due later this week.
A stronger dollar typically makes gold more expensive for buyers holding other currencies, which can soften demand. Higher interest rates also work against the metal, since it pays no yield and makes interest-bearing assets more attractive.
Investors additionally reviewed the minutes of the Fed’s September meeting for clues on the central bank’s policy direction. Ricardo Evangelista, director and chief executive of ActivTrades, said gold remained under pressure from a dollar near recent peaks, with traders cautious before this week’s US inflation release.
Safe-haven demand and global uncertainty
Gold is traditionally regarded as a hedge against inflation and a safe asset during economic and geopolitical unease.
Globally, investors kept watching Middle East developments and forthcoming US economic indicators for hints on the Fed’s next moves.
