The price of gold has dropped in both global and local markets.
The price of gold in the local markets has carried its downwards trend from the previous week.
The price of 24-karat gold per tola has fallen by 1,100 rupees to 260,400 rupees. Similarly, the price of gold per 10 grams has decreased by 943 rupees to 223,251 rupees.
In contrast to the decline in gold prices, the price of silver remains unchanged at 2,850 rupees per tola and 2,443.41 rupees per 10 grams.
The decrease in local gold prices come ahead of the SBP’s monetary policy meeting on Friday, September 12.
Pakistan’s central bank is expected to announce a third consecutive cut in its key policy rate, likely between 1% and 1.5%.
This anticipated reduction follows August’s dip in inflation to single digits and is aimed at boosting economic activity for the fiscal year 2024-25.
The price dip also follows Pakistan announcement of its weekly inflation measure, the Sensitive Price Indicator (SPI), that fell to a three-year low of 14.07% for the week ending September 5, 2024, compared to the same period last year.
Meanwhile in the intertnational marklets gold prices fell on Monday as the dollar strengthened, with spot gold dropping 0.2% to $2,491.11 per ounce and US gold futures also declining by 0.2% to $2,520.30.
The dollar index increased by 0.4%, making gold more expensive for holders of other currencies. Investors are awaiting US inflation data this week to assess potential Federal Reserve interest rate cuts, which could influence gold prices.
Analysts predict a 75% chance of a 25-basis point cut and a 25% chance of a 50-bp reduction. Key support for gold is at $2,470, with resistance at $2,520. Meanwhile, silver, platinum, and palladium saw gains.
