Gold prices in Pakistani markets nosedived on Thursday after international rates remained bearish despite expectations of inflation easing during 2023.
On Thursday, gold prices in the domestic market fell by roughly Rs. 5,200 per tola, with average rates in the local market dropping to Rs. 183,400 per tola. The US dollar’s surge worldwide was also one of the factors behind the drop today.
The 10-gram gold price fell by Rs. 4,458 to Rs. 157,236.
International merchants were playing it safe overall as spot gold was down 0.9 percent at $1,837.01 per ounce at 9:15 AM, after falling as low as $1,824.08. Bullion futures in the United States quieted down around 1 percent at $1,840.6.
Silver prices fell by around Rs. 23 per tola to Rs. 2,127, while the price of a 10-gram silver bar fell by Rs. 17.85 to Rs. 1,827.
As is the case with external pressures weighing heavily on domestic bullion trade, the US dollar strength was weighing on gold. The dollar rose 0.7 percent in the past 24 hours, making gold more expensive for foreign currency holders, while local players thrived.
Because non-yielding bullion pays no interest, higher interest rates tend to weigh on it.
Analysts suggest if the market gets the same kind of beats/expectations for the duration of this week, gold and silver will likely extend lower to around $1,805-$1,800, which is a key level in precious metal markets these days.