Gold prices see sharp decline in Pakistan

KARACHI: The prices of gold saw a sharp decline in Pakistan amid easing prices in the international markets on Tuesday.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold declined by Rs2,100 to settle at Rs274,900 per tola.

Similarly, gold 10-gramme fell by Rs1,800 to close at Rs235,682. However, the silver price remains unchanged at Rs3,400 per tola.

Meanwhile, the price of the yellow metal eased in the International market, pressured by a firmer US dollar and Treasury yields, as investors looked ahead to the Federal Reserve’s interest rate decision amid expectations it will adopt a cautious approach to monetary policy easing next year.

Spot gold was down 0.5% at $2,639.22 per ounce as US gold futures shed 0.6% to $2,654.10.

Similary, spot silver was down 1.1% to $30.20 per ounce, platinum shed 1.2% to $924.58, and palladium fell 1.2% to $935.25.

Read More: Gold falls for second session on higher dollar

The dollar and benchmark US 10-year Treasury yields rose ahead of the Fed’s final policy meeting of the year starting later in the day.

While a widely anticipated quarter point interest rate cut is expected on Wednesday, traders are increasingly convinced the central bank will lower borrowing rates only gradually next year.

According to CME’s FedWatch tool, the odds of a 25 bps cut this week stand at 97%, but the chances of a reduction in January are just around 17%.

Gold, the yellow metal, has been a symbol of wealth and prosperity for centuries.

Beyond its ornamental value, gold has played a significant role as a safe haven asset, providing a refuge for investors during times of economic uncertainty, geopolitical tensions, and market volatility.

In recent years, gold’s safe haven status has been reaffirmed, as investors seek shelter from the storms of global economic and political instability.