Gold price in Pakistan drops Rs600 per tola

March 18, 2024 (MLN): The domestic bullion continued upon its losses incurred in the previous session as the price of 24-karat gold dropped by Rs600 to Rs226,900 per tola on Monday.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold reached Rs194,530 per tola, reflecting a drop of Rs515.

Similarly, the price of 10-gram 22-karat gold fell and was quoted at Rs178,319.

Silver prices also dropped, as 24-karat silver is being sold at Rs2,580 per tola and Rs2,211.93 per 10-gram, down by Rs20 and Rs17.15, respectively.

Last week, 24-karat gold snapped its two-week-long upward journey and settled with a loss of Rs2,700 per tola.

On the global front, international spot gold traded near $2,154.53 an ounce, down by 0.06% from the previous session.

This drop in the international market is attributed to lowered expectations of a U.S. interest rate cut after sluggish price data last week.

U.S. consumer prices increased above expectations in February and producer prices also reflected signals of inflationary pressures.

"Gold has already priced in whatever positive boost it would get from expectations that interest rates are going down... if inflation starts to kick higher again, it means that policymakers are going to have to keep monetary policy more restrictive for longer," said Everett Millman, chief market analyst at Gainesville Coins, as Reuters reported.

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