Gold prices dip after earlier reaching record high

Gold prices drop in local markets with 24-carat gold at Rs 275,500 per tola and silver steady at Rs 3,050.

Gold prices have decreased in the global and local markets. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-carat gold per tola also decreased by Rs 500 in local gold markets, settling at Rs 275,500.

The price for 10 grams of gold also dropped by 428 rupees, reaching 236,197 rupees.

On the other hand, in the international bullion market, the price of gold per ounce has fallen by $4, bringing it down to $2,653.

In contrast to the decline in gold prices, the price of silver per tola remained stable at Rs 3,050.

The price for 10 grams of silver also held steady at Rs 2,614.88.

Earlier, gold prices in Pakistan hit a record high of Rs 264,000 per tola, rising by Rs2,300 in one day, driven by global market trends as investors positioned themselves ahead of upcoming CPI inflation data.

In the international market, gold increased by $23 per ounce, reaching $2,524, nearing its previous peak. Investors are anticipating a slowdown in US inflation, which, along with weak unemployment and job creation figures for August, could lead to a significant interest rate cut by the US Federal Reserve.

In addition, the Pakistani rupee strengthened against the US dollar, gaining Rs 0.08 in the inter-bank market to close at Rs 278.54.

In the open market, it improved by Rs 0.10, settling at Rs 280.85 per dollar. Market speculation indicates that foreign investors have invested $27 million in Pakistan's government debt securities, bolstering forex reserves and providing support for the rupee.

This background sets the stage for understanding the current dynamics in the gold market and currency fluctuations in Pakistan, which may be relevant for today's analysis.