Gold price drops in Pakistan as global rates remain under pressure
Gold prices in Pakistan continue to decline as international rates remain under pressure. The latest fall has also affected silver prices, bringing some relief to people planning to buy precious metals.
International Gold Price Drops by $49
According to the latest market figures, the international price of gold fell by $49 per ounce to reach $3,891 per ounce. The decline reflects continued pressure on the global precious metals market.
In Pakistan, the price of 24-karat gold decreased by Rs4,900 per tola, bringing the new rate to Rs411,636. The price of 10-gram gold also fell by Rs4,201 to settle at Rs352,911.
Silver Prices Also Record a Decline
Silver prices followed the same downward trend in the local market. The price of silver dropped by Rs111 per tola to reach Rs5,467.
The latest decline in both gold and silver prices may provide some relief to buyers. However, market rates can continue to change depending on international developments and currency movements.
Strong US Dollar Puts Pressure on Gold
International gold prices have faced pressure from a stronger US dollar and rising bond yields. Expectations that the US Federal Reserve may increase interest rates further have also affected the market.
According to Reuters, gold faced a sharp sell-off on Thursday, November 12, reaching its lowest level in more than a year. Prices recovered slightly on Friday, but the precious metal remained on track for a nearly 4% decline during the week.
Why Higher Interest Rates Affect Gold
Higher interest rates can make gold less attractive to investors because the metal does not provide interest income. Investors may prefer other options that offer better returns when interest rates rise.
In Pakistan, gold prices depend mainly on international market rates and changes in the rupee-dollar exchange rate. This means local prices can rise or fall even when demand in the domestic market remains unchanged.
Analysis
The continued decline in gold prices may encourage buyers who were waiting for lower rates. However, further changes in US interest rate expectations and the dollar’s strength could influence prices in the coming days.
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