ISLAMABAD
Gold prices in the local market decreased massively on Wednesday, following rupee’s appreciation against the US dollar and a consistent dip in international bullion prices.
The price of one tola of 24-karat gold decreased to Rs202,300 from Rs206,000. During the last three days, the price of one tola of 24-karat gold has decreased by Rs13,500. Similarly, the gold price for 10 grams of 24-karat decreased to Rs173,440.
The fall in the precious metal’s value was witnessed as the rupee’s upward movement in the local market. It is to be noted that local bullion pricing bodies, Karachi Sarafa Market and All Pakistan Gems and Jewelers Association, have refrained from announcing daily commodity prices since September 13 and the prices quoted above are being collected from different markets.
This decision follows a crackdown on alleged betting and smuggling activities by certain institutions.
This is sparking speculation about potential actions against gold smugglers or a downward trend in the country’s precious metal market, leading to silence from the pricing body. It is worth noting that in the absence of official gold rates, consumers at jewelry shops are experiencing a state of confusion.
On the other hand, as of 1355 hours GMT, gold futures in the international market were available at $1,886.50 per ounce, showing a decrease of $13.90. Out of the $13.90 decrease, -$6.20 was due to strengthening of the US dollar and -$7.70 was due to predominant sellers, according to the Kitco Gold Index.
Gold prices found it difficult to stage a rebound after dropping to a monthly low below $1,900. The benchmark 10-year US Treasury bond yield held steady near the multi-year high it set above 4.5 percent, making it difficult for gold prices to shake off the bearish pressure.
Gold price has been trending lower after facing rejection near the very important 200-day Simple Moving Average (SMA) last week and continues losing ground for the third successive day on Wednesday. This also marks the sixth day of a negative move in the previous seven and drags the commodity to its lowest level since August 2022. The US dollar touches a fresh 10-month peak and continues to draw support from the Federal Reserve’s higher-for-longer narrative, which, in turn, is seen weighing on the gold price.
