At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
KARACHI:
Gold prices in Pakistan declined on Monday, mirroring the downward trend in the international market, where bullion slipped below the $4,000 per ounce mark amid signs of easing US-China trade tensions and caution ahead of the US Federal Reserve’s interest rate decision this week.
According to data shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs3,300, settling at Rs430,362. Similarly, the price of 10 grams of gold fell by Rs2,829 to Rs368,966.
On Saturday, the yellow metal had gained Rs1,800, pushing the per-tola price to Rs433,662.
Adnan Agar, Director at Interactive Commodities, said gold’s recent correction was driven by shifts in global sentiment. “Gold prices are trending downwards and have broken the crucial $4,000 level,” he said, noting that the metal hit a low of $3,971 and a high of $4,064 during the session.
“Chances of a further dip towards $3,850 appear strong before the market stabilises. A rebound could follow once the market finds support around that level,” he added.
He further noted that investors were awaiting the Federal Reserve’s policy announcement on Wednesday, which could provide the next major cue for gold’s direction.
Spot gold was down 2.9% at $3,991.39 per ounce at 12:25 pm ET (1625 GMT), according to Reuters. US gold futures for December delivery were down 3.2% at $4,005.70. “A potential US-China trade deal portends a little less need for safe-haven assets such as gold,” said David Meger, Director of Metals Trading at High Ridge Futures.
Gold climbed to a record high of $4,381.21/oz on October 20, but retreated 3.2% last week following hints of easing trade tensions between the world’s two largest economies. Negotiators from the US and China on Sunday outlined the framework for a deal to pause steeper American tariffs and defer China’s rare-earth export controls.
US President Donald Trump and China’s Xi Jinping are expected to meet on Thursday to further discuss a trade accord.
The Pakistani rupee posted a slight appreciation against the US dollar in the inter-bank market on Monday. According to data released by the State Bank of Pakistan (SBP), the local currency closed at 281.01 against the greenback, gaining Rs0.01 by the end of the trading session.
