On Saturday, gold prices in Pakistan ended a streak of highs that lasted for multiple sessions. Dealers blamed a global decline in the precious metals market on the hawkish stance taken by the US central bank.
On Friday, fears that the US Federal Reserve might extend its monetary tightening drive were stoked by stronger-than-anticipated employment numbers, which caused gold prices on global markets to fall by more than 2% to a level that was more than three weeks lower.
The price of 24 carat gold decreased by Rs4,000 per tola and Rs3,429 per 10 grams, according to data from the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), to Rs204,500 and Rs175,326, respectively.
During the week, the gold lost Rs4,500, or 2.15 percent per tola, all together. It is important to note that the price of the precious metal on Monday reached an all-time high of Rs210,500.
The fall comes after the gold made continuous gains for three sessions in a row despite depleting foreign exchange reserves and a weak rupee. This makes the precious metal more expensive because Pakistan gets all of its bullion demand from imports.
The State Bank of Pakistan’s (SBP) reserves decreased by $592 million to $3,086.2 million during the week that ended on January 27. This was the lowest level since February 2014, and the reserves are barely sufficient to cover imports for 18.5 days (0.61 months).
By 1:40 p.m. ET (18:40 GMT), spot gold had fallen by 2.6% to $1,863.66 per ounce. U.S. gold futures settled at $1,876.6, down 2.8%.
Bullion prices have fallen nearly $100 in two sessions, making this week’s decline the largest since the beginning of October. Bullion is down 2.5% so far this week.
In the meantime, the price of silver in India fell by Rs100 per tola and Rs85.74 per 10 grams to Rs2,250 and Rs1,929, respectively.
