Gold Price Plummets in Pakistan Amid US Rate Hike Expectations

The price of gold in Pakistan plummeted on Friday, despite a rebound in international markets, due to increased expectations of a US Federal Reserve rate hike.

According to the All-Pakistan Gems and Jewellers Sarafa Association, one tola of gold decreased by Rs5,600 to Rs456,736, while 10-gram gold fell by Rs4,801 to Rs391,577.

The decline in domestic gold prices is attributed to fluctuations in international bullion prices and currency-linked pricing. Internationally, spot gold rose 1.2% to $4,366.69 per ounce on Friday, but remained down around 1.4% for the week due to expectations of tighter US monetary policy.

Adnan Agar, Interactive Commodities Director, noted that the US inflation data reinforced market expectations of a rate hike and triggered nearly $100 movement in gold prices. He identified key levels at $4,300 and $4,400, stating that buying tends to emerge near the lower level while profit-taking sets in around the upper end.

Silver prices in Pakistan also declined, falling Rs253 to Rs6,871 per tola. The Pakistani rupee gained Rs0.03 against the US dollar in the inter-bank market, closing at 277.32 compared with 277.35 a day earlier.