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Gold prices in Pakistan plummet Rs7,800 per tola

Gold prices in Pakistan see 4th consecutive decline
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April 23, 2024 (MLN): Gold prices in Pakistan plummeted on easing geopolitical tensions in the Middle East and signs the Federal Reserve will keep rates higher for longer, with 24-karat gold falling Rs7,800 to Rs240,900 per tola.

Yesterday, the yellow metal lost Rs3,500 per tola.

This comes after international gold prices recorded their biggest daily decline in almost two years on Monday.

The Karachi Sarafa Association further reported that the price of 24-karat gold retreated to Rs206,533 per 10-gram, down Rs6,687 DoD.

Similarly, the price of 22-karat gold was quoted lower at Rs189,322 per 10-gram.

Moreover, silver prices also fell in the domestic market, with 24-karat silver being sold at Rs2,650 per tola and Rs2,271.94 per 10-gram, a loss of Rs100 per tola and Rs85.74 per 10-gram.

The easing Middle East tensions have “seen some profit taking, and there is likely to have been some tactical short-selling, given the recent surge in gold prices,” Richard Grace, a senior currency analyst and international economist at ITC Markets, said in a note, as Bloomberg reported.

Globally, spot gold is still up about 16% since the middle of February, with gains supported by geopolitical risk, central bank buying and demand from Chinese consumers.

The precious metal has risen despite advances in the dollar and Treasury yields on signs the Fed will delay its much-anticipated pivot.

Traders are now turning their attention to US economic data due this week, including the Fed’s preferred measure of inflation, which may give more clues on the path for monetary policy.

Policymakers have turned increasingly hawkish on the outlook for rates in recent weeks following a series of strong inflation reports.

With markets continuing to temper expectations for monetary easing this year, the precious metal may be forced to reckon with the prospect of a higher-for-longer rate environment, a scenario that would typically be a headwind for gold as it doesn’t pay interest.

Spot gold dropped 0.87% to $2,307 an ounce at 12:55am PST. Silver declined, after tumbling 5.2% in the previous session. Palladium and platinum also dropped.

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Posted on: 2024-04-23T12:58:07+05:00