Gold prices in Pakistan decreased on Monday after international rates retreated following early-day gains to above $2,000 per ounce.
According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs. 1,000 per tola to settle at Rs. 207,300. Similarly, the price of 10 grams of gold decreased by Rs. 858 to settle at Rs. 177,726.
Meanwhile, domestic silver prices were largely stable at Rs. 2,250 per tola and Rs. 1,929 per 10 grams.
Earlier today, international gold prices shot past $2,000 per ounce for the first time since March 10, 2022, as banking crises in the United States and Europe stirred panic across commodity markets.
Spot bullion’s early-day gains came as markets and investors around the world were uncertain about the banking industry’s future. At around 1:30 PM Pakistan time, gold returned to $1,999. However, the market situation remains extremely volatile and will continue until the US Federal Reserve announces its decision on whether or not to hike interest rates again on Wednesday.
The Bloomberg Dollar Spot Index remained stable after falling 0.6 percent the previous week. A stronger dollar is bad for commodities like gold that are priced in US dollars. This essentially means if current trends persist, the greenback is a safer bet as an investment as compared to gold.
In the current scenario, gold price volatility is expected to last only until more clarity emerges on the situation of Credit Suisse, Asia’s second-largest wealth manager, and if its merger calms down stocks and the rest of the world’s markets.