Pakistan Gold Drops 2,700 Rupees as Strong Dollar Pressures Bullion
Bullion prices fell in Pakistan on Monday as Fed hike bets strengthened the greenback and lowered international spot gold.
Key points
- Gold per tola fell 2,700 rupees to 457,536 rupees in Pakistan on Monday.
- Spot gold dropped 0.6 percent to 4,350.39 dollars per ounce as the dollar strengthened.
- Traders price in an 88 percent chance of a US Federal Reserve rate hike in December.
Gold prices in Pakistan fell by 2,700 rupees per tola on Monday. The drop to 457,536 rupees mirrored a decline in international bullion markets. This movement was driven by a strengthening US dollar and shifting rate expectations.
Traders now assign an 88 percent probability to a Federal Reserve rate hike in December. Higher interest rates typically reduce the appeal of non-yielding assets like gold. The stronger dollar also makes the metal more expensive for foreign buyers.
International spot gold trades near 4,350 dollars
Spot gold declined 0.6 percent to 4,350.39 dollars per ounce by midday. The price hit a session low of 4,322.19 dollars earlier in the day. US gold futures fell 0.8 percent to 4,388.40 dollars during the same period.
Market analysts note that gold has traded within a narrow range recently. Prices fluctuated between 4,250 and 4,400 dollars over the last two weeks. The market has yet to establish a clear directional trend for the precious metal.
Analysts cite persistent inflation risks for policy
Federal Reserve officials continue to emphasize that inflation remains too high. Minneapolis Fed President Neel Kashkari stated that price pressures persist across economic sectors. These comments support the view that monetary policy will remain restrictive.
Adnan Agar of Interactive Commodities observes that oil price movements affect bullion sentiment. Physical demand for gold continues to rise despite short-term price volatility. He suggests that this underlying demand could provide support to future prices.
Rupee gains as silver prices hold steady
The Pakistani rupee appreciated by 0.03 rupees against the US dollar. The currency closed at 277.22 rupees in the inter-bank market on Monday. Silver prices remained unchanged at 7,100 rupees per tola in domestic trading.
The Express Tribune reported that the rupee gain coincided with the gold price drop. This movement reflects broader shifts in global currency markets and interest rate expectations. Domestic metal prices continue to track international benchmark levels closely.
