Gold falls Rs2,600 on global slowdown
Globally, gold prices rose for a third straight session, helped by a softer dollar and safe-haven demand amid economic and geopolitical uncertainty. photo: Reuters
Local gold prices declined on Monday, tracking a slowdown in the international bullion market. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs2,600 per tola, settling at Rs351,500 in the local market. The price of 10-gram gold also fell by Rs2,228, closing at Rs301,354.
The downturn comes after a notable gain over the weekend when gold prices surged by Rs3,100 per tola on Saturday to hit Rs354,100.
Globally, gold prices also saw a dip on Monday. The international rate stood at $3,331 per ounce (including a $20 premium), reflecting a decrease of $26, according to APGJSA. Adnan Agar, Director at Interactive Commodities, noted that market activity was subdued due to a US bank holiday, with early closure and minimal trading volumes.
"The market is practically flat today. The high was $3,356, while the low touched $3,323. It's currently hovering around $3,335," he said.
Agar added that the recent easing of trade tensions between the US and Europe also contributed to the decline. The issue of additional European tariffs, hinted at by former President Donald Trump on Friday, was resolved over the weekend after discussions with the European Union. Trump agreed to delay the tariffs, which led to pressure on gold prices.
He further predicted that prices may continue to slide once international markets resume full operations on Tuesday.
Meanwhile, the Pakistani rupee recorded a minor loss against the US dollar on Monday, slipping by 0.03% in the inter-bank market.
The local currency closed at 282.06, down by Rs0.09 from the previous session, according to data released by the State Bank of Pakistan (SBP).
During the preceding week, the rupee had also weakened slightly, depreciating by Rs0.31 or 0.11%, ending at 281.97 against the greenback compared to 281.66 a week earlier.
"At the close of the trading session, the Pakistani rupee depreciated by 0.03% day-on-day (DoD) against the US dollar, settling at 282.06. On a calendar year-to-date (CYTD) basis, the rupee has weakened by 1.24%, while the depreciation stands at 1.32% on a fiscal year-to-date (FYTD) basis," wrote Ismail Iqbal Securities.
On the global front, both the euro and the US dollar gained ground against traditional safe-haven currencies like the Japanese yen and Swiss franc. The uptick followed former US President Donald Trump's announcement of a July 9 deadline for finalising a trade agreement with the European Union, effectively withdrawing his earlier threat of imposing a 50% tariff starting June 1.
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