Gold drops Rs43,600 per tola in Pakistan after dive in global market
Amid escalating Middle East conflict, precious metal declined 6.3pc to $4,203.21 per ounce today, extending losses into a ninth straight session
Gold prices registered record decline in Pakistan on Monday after precious metal slid more than eight per cent in global market which is its lowest level in four months, reported 24NewsHD TV Channel.
Amid escalating Middle East conflict which stoked inflation concerns and raised expectations of higher global interest rates, gold declined 6.3pc to $4,203.21 per ounce today, extending losses into a ninth straight session.
In Pakistan, per tola in Pakistan significantly fell by Rs43,600 in line with the decline in the international rates. In the local market, the gold price per tola reached Rs447,762 after witnessing a record single-day decrease in the country.
According to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the per tola price dropped by Rs43,600, bringing the new rate down to Rs447,762. Gold priced per 10 grams also suffered a steep fall, recording a decrease of 37,380. As a result, the new price of 10 grams has settled at 383,883.
The price of silver decreased by Rs800 to reach Rs6,884 per tola. The metal dropped more than 10pc last week, its steepest weekly loss since February 1983, and has also retreated about 25pc from its record peak of $5,594.82 an ounce reached on January 29. US gold futures for April delivery dropped 8.1pc to $4,205.10.
The market experts said that with the Iranian conflict entered its fourth week, and oil prices hanging around the $100 level, expectations have pivoted from rate cuts to potential rate hikes, which have tarnished gold’s appeal from a yield point of view.
Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours in retaliation if US President Donald Trump followed through with his threat to hit Iran’s electricity grid.
Asian shares fell, and oil prices stayed above $110 a barrel. The closure of the Strait of Hormuz has kept crude elevated, stoking inflation fears by pushing up transport and manufacturing costs. While rising inflation typically boosts gold’s appeal as a hedge, high rates curb demand for the non-yielding asset.
Other precious metals also declined sharply, with spot silver declining 6.1pc to $63.66 per ounce and platinum slipping 6.4pc to $1,799.25. Both metals earlier hit their lowest levels since mid-December. Palladium shed 3.6pc to $1,352.75.