Gold rates drop in Pakistan

KARACHI: The gold rates continue to decline in Pakistan in line with the international rate, ARY News reported Monday.

The yellow metal was priced at Rs226,900 per tola after shedding Rs600 during the day, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The 10-gram gold was sold at Rs194,530 after a decrease of Rs 515. Meanwhile, silver rates saw a slight decrease of Rs 20 and sold at Rs2,580 per tola.

Furthermore, gold rates decreased by $5 and was sold at $2,170 per ounce in the international market.

Gold prices firmed on Friday but were on track for their first weekly drop in four over concerns that the Federal Reserve might defer interest rate cuts beyond June after data showed a higher-than-expected rise in inflation.

Read more: Gold heads for weekly fall

Spot gold rose 0.4% at $2,169.99 per ounce, as of 1035 GMT. U.S. gold futures edged 0.3% up at $2,174.20.

Bullion was on track for a weekly drop of about 0.5%, its first since mid-February, and retreating from its last week’s record high of $2,194.99 after data indicated that U.S. consumer prices increased above expectations in February. U.S. producer prices also showed some stickiness in inflation.

Higher-than-expected inflation puts the Fed under more pressure to maintain interest rates higher for longer, weighing on non-yielding assets such as gold.

“There will be a positive undertone in 2024 for gold with strong investment demand and safe-haven demand,” Jigar Trivedi, a senior analyst at Reliance Securities, said.

After last week’s strong rally, some sort of consolidation or profit booking is expected, and the dollar index rebounding after very strong U.S. economic data has led to the weekly dip in gold, Trivedi added.

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