Gold prices in Pakistan experienced a sharp decline on Monday, mirroring losses in the international market, as escalating tensions in the Middle East raised inflation concerns and reinforced expectations that major central banks might maintain tighter monetary policies for an extended period.
Price Details
According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola dropped by Rs4,400 to settle at Rs471,762. Similarly, the price of 10 grams of gold fell by Rs3,773 to Rs404,459.
International Market
In the international market, spot gold declined by 1% to $4,489.34 per ounce by 1:50 pm EDT (1750 GMT), after reaching a two-week high on Friday, according to Reuters. US gold futures settled 1.9% lower at $4,506.30 per ounce. Market analysts attributed the decline to a stronger US dollar and profit-taking by investors following the recent rally.
Expert Analysis
Adnan Agar, Director at Interactive Commodities, stated that gold remained under pressure throughout the trading session. It touched a low of $4,447 and was later trading around $4,477, with the day's high at $4,550. Agar noted that developments in the Middle East were influencing investor behavior. 'Following recent news that talks between Iran and the US have been suspended, the market has come under pressure and gold is reflecting that weakness,' he said. Agar added that the precious metal could witness further downside before resuming its upward trajectory. 'It appears that gold may first move towards the $4,100-$4,200 range before regaining momentum and advancing further,' he explained.
Currency Movement
Meanwhile, the Pakistani rupee appreciated by 0.01% against the US dollar in the interbank market, closing at 278.47 compared with 278.50 on Friday.
