Pakistani Gold Prices Drop Amid Global Uncertainty
Gold prices in Pakistan declined on Friday despite international rates posting modest gains. The local downturn occurred as investors weighed developments in the Middle East conflict and their potential impact on energy costs and broader inflation ahead of the US Federal Reserve's rate decision next week.
The price of gold per tola settled at Rs427,436 after dropping Rs4,600 during the day. In the international market, spot gold rose 0.6% to $4,073.23 per ounce by 11:50 am EDT (1550 GMT), as per Reuters.
The local rupee extended its marginal gains on Friday, closing at 277.87 against the US dollar in the inter-bank market, a rise of Rs0.03, or 0.01%. Market participants are closely monitoring the Fed meeting for policy signals, with traders currently assigning a high probability to a rate hike in September.
Analysts note that sustained declines in crude oil could ease cost pressures, while any escalation in geopolitical tensions or unexpected monetary tightening may reverse recent local softness.