Gold Prices Plunge in Pakistan Amid Rate Hike Expectations
Gold prices in Pakistan plummeted on Friday, despite a rebound in international markets. According to the All-Pakistan Gems and Jewellers Sarafa Association, one tola of gold decreased by Rs5,600 to Rs456,736.
The price of 10-gram gold also fell by Rs4,801 to Rs391,577. This decline brings renewed pressure on the domestic market after recent fluctuations in international bullion prices and currency-linked pricing.
Internationally, spot gold rose 1.2% to $4,366.69 per ounce by 11:22 am EDT (1522 GMT) on Friday. However, it remained down around 1.4% for the week due to expectations of tighter US monetary policy.
The US consumer inflation picked up in August, reinforcing market expectations that the Federal Reserve may raise rates at its upcoming policy meeting. Traders were pricing in an 87% chance of a rate hike in September.