Gold Prices See Highest Ever Single-Day Drop in Pakistan

Gold prices in Pakistan reversed their upward trend on Tuesday after the Pakistani Rupee gained big against the US Dollar in interbank trade following positive news coming out of the IMF camp.

According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs. 9,000 per tola to settle at Rs. 201,500. Similarly, the price of 10 grams of gold decreased by Rs. 7,716 to settle at Rs. 172,754.

Traders have credited today’s gold slump to the rupee recovery after talks between Pakistan and the IMF resumed today.

Spot gold in the international markets was down almost 1 percent after initially looking all set for big gains. Bullion dropped to $1,904.29 per ounce at 11:25 GMT, its lowest level in two weeks. Analysts on commodity watch suggest that gold prices are being squeezed by the strengthening dollar as expectations rise ahead of the US Federal Reserve’s rate decision and policy statement on Wednesday.

Traders raised their gold price forecasts considerably, but expect high-interest rates to keep bullion rallies sealed up for the time being. Meanwhile, miscellaneous forecasts foresee gold rates to remain in the $1,900-1,920 range this week after today’s slump.