Pakistan Gold Prices Plummet Over $4,500 an Ounce Amid Fed Hike Bets

Gold prices in Pakistan plummeted by over Rs15,000 per tola on Saturday as investors reacted to rising expectations of a US Federal Reserve interest rate hike. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold dropped to Rs467,936 from its previous day's level.

The decline in gold prices was mirrored globally, with spot gold falling nearly 3% to $4,567.23 per ounce, its lowest level since August 20. The US Federal Reserve Chairman Kevin Warsh's comments on inflation strengthened expectations of further monetary tightening, leading investors to interpret his remarks as a signal that the central bank may still need to raise interest rates.

The APGJSA also reported that the price of silver fell by Rs397 per tola to Rs7,112. Globally, bullion came under heavy selling pressure due to increased expectations of a US rate hike, which typically reduces the appeal of non-yielding assets like gold and makes it more expensive for buyers using other currencies.