Gold Prices Plummet Ahead of US Fed Decision
Gold prices in Pakistan plummeted on Tuesday by Rs4,000 per tola to Rs449,336, as the precious metal continued its decline in the international market. The fall was attributed to a stronger US dollar and elevated Treasury yields, which reduced the appeal of gold ahead of the Federal Reserve's monetary policy decision.
The price drop came on top of Monday's loss of Rs3,800 per tola. In the global market, spot gold fell 0.2% to $4,289.74 per ounce, while US gold futures dropped 0.5% to $4,330.30. The decline was further fueled by a rally in crude oil prices, which strengthened inflation concerns and expectations of a hawkish stance from the Federal Reserve.
Adnan Agar, Director at Interactive Commodities, stated that the gold market was awaiting the US monetary policy announcement and the tone of the Federal Reserve's post-meeting press conference would be crucial for determining its next direction. According to Agar, a dovish stance could initially push gold lower, followed by a recovery, while a hawkish outlook could increase the likelihood of further decline.