Gold prices fall in Pakistan as oil prices climb

Add ARY News on GoogleFollow on Google Discoverimage: fileAAResizeKARACHI: Gold prices declined in Pakistan on Wednesday, tracking losses in international bullion markets as oil prices climbed, while investors awaited US inflation data for clues about the Federal Reserve’s next monetary policy move.

According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola fell by Rs3,000 to settle at Rs437,836.

Similarly, the price of 24-karat gold per 10 grams decreased by Rs2,572 to Rs375,373.

In the international market, gold prices dropped by $30 to $4,153 per ounce, the association reported.

Silver prices also declined in the local market, falling by Rs172 to Rs6,360 per tola.

Globally, investors remained focused on developments in the Middle East and upcoming US economic indicators for clues about the Federal Reserve’s future interest rate decisions.

Gold is traditionally considered a hedge against inflation and a safe-haven asset during periods of economic and geopolitical uncertainty. However, higher interest rates tend to weigh on demand for the precious metal, which offers no interest income, making yield-bearing assets more attractive.

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“ I think for a large part, a lot of traders are sitting on their hands ahead of the release of the CPI data later today, which could impact the direction of the US dollar, gold prices and everything else really pricing the dollar,” said Fawad Razaqzada, a market analyst at Forex.com.

Oil prices climbed on Wednesday after two vessels were struck in the Strait of Hormuz. Iranian officials told Reuters they were deploying new tactics to target ships as Tehran sought to keep oil prices high and influence the US midterm elections.

“Once the US dollar pops out, we are very close to seeing the dollar potentially topping out. That’s when gold is going to shine more brightly. I reckon that the metal could rise back towards the 4,500 area, 4,700 even in the later months of the year,” Razaqzada added.

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