Gold price in Pakistan drops following global downturn

Gold became cheaper in Pakistan on Tuesday as both local traders and international markets reported another day of weakness in the metal’s value.

Dealers in the local market quoted 24-karat gold at Rs423,662 per tola after a fall of Rs7,000. The price for 10 grams of the same purity slipped to Rs363,221, reflecting a drop of Rs6,002, according to the All Pakistan Gems and Jewellers Sarafa Association. Rates for 22-karat gold also softened, settling at Rs332,964 per 10 grams.

Silver followed the same path. Prices for 24-karat silver eased to Rs5,245 per tola while the 10-gram rate decreased to Rs4,496.

Traders in the local market said the downtrend reflected weaker global sentiment, which has overshadowed retail activity in recent days.

Global pressure weighs on bullion

International gold prices continued to lose ground, slipping for the fourth session in a row as investors responded to a stronger dollar and fading expectations of a near-term interest rate cut in the US.

Spot gold traded close to 4,022 dollars an ounce, down 14.3 dollars from the previous close. By mid-morning, it was down 0.8 percent at 4,011.85 dollars an ounce. US gold futures for December delivery were lower at 4,010.90 dollars an ounce.

Analyst Edward Meir of Marex said speculative interest in the metal had cooled over the week and that the market was likely to consolidate until clearer signals emerged from the US economy.

The dollar held firm after a sharp climb in the previous session, making gold relatively more expensive for buyers dealing in other currencies.

Market sentiment had also been shaped by the recent end to the longest US government shutdown on record. The lack of key economic data during the extended closure weakened expectations of a rate cut by the Federal Reserve in December.

Adding to the cautious tone, Fed Vice Chair Philip Jefferson said on Monday that the central bank needed to move carefully on future rate reductions. His remarks lowered hopes of any immediate policy shift and added further pressure on bullion prices.