According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold in Pakistan has fallen for the third consecutive session, dropping by Rs2,300 per tola and Rs1,971 per 10 grams to settle at Rs201,900 and Rs173,097, respectively. This follows a decline of Rs6,400 per tola in three sessions. Despite the upcoming holy month of Ramadan and the wedding season, which typically leads to increased demand for gold in Pakistan, the drop in price is attributed to the appreciation of the rupee against the dollar and a significant decline in the international market.
In Pakistan, gold prices are linked to the dollar’s value as the country relies heavily on imports to meet its gold demand, with jewelers importing the metal against the US dollar and UAE dirham before converting its price into rupees. However, despite the drop in price, the APSGJA reported that the price of gold in Pakistan is Rs14,000 per tola cheaper than in Dubai, indicating that the Pakistani gold market is currently cheaper than the global market.
Meanwhile, in the international market, gold traded within a tight range, settling at $1,939 per ounce after a $29 decline. Traders are positioning themselves for the US Federal Reserve’s interest rate decision and Chair Jerome Powell’s comments on the path of future hikes. The Fed is widely expected to increase rates by 25 basis points, according to the CME FedWatch tool, but some Wall Street banks are divided over whether to raise or pause. In contrast, silver prices in the domestic market remained unchanged at Rs2,200 per tola and Rs1,886.14 per 10 grams.
