Gold prices drop, rupee weakens

Gold prices in Pakistan fell on Friday, mirroring a global decline in rates. The price of gold per tola in the local market dropped by Rs1,000 to Rs274,700, while the price per 10 grams decreased by Rs857 to Rs235,511, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This follows a Rs500 increase per tola recorded on Thursday.

Internationally, gold prices also declined on Friday, with the rate falling $10 to $2,635 per ounce, including a $20 premium, as reported by APGJSA. Adnan Agar, Director of Interactive Commodities, attributed the Rs1,000 drop to strong US employment data, which typically weighs on gold prices. He also noted that the upcoming US holiday season shifts consumer spending patterns. "Currently, people are eager to seize any buying opportunity during price dips," Agar said, adding that gold's lower support level is $2,560, last reached in November 2023.

Later in the day, gold prices edged higher in the international market after the US November jobs report indicated a gradual easing in the labour market, raising prospects of another Federal Reserve interest rate cut. Spot gold rose 0.3% to $2,639.51 per ounce, while US gold futures gained 0.5% to $2,661.70.

Meanwhile, the Pakistani rupee weakened slightly against the US dollar, depreciating by 0.03% in the inter-bank market. By the session's end, the rupee stood at 278.01, down by Re0.07 from the previous day's close of 277.94, according to the State Bank of Pakistan (SBP).

Speaking to The Express Tribune, Forex Association of Pakistan Chairman Malik Bostan noted that the rupee has traded in a narrow range of Rs277.70 to Rs278.10 this year, supported by a $3 billion Saudi Arabian rollover under an International Monetary Fund (IMF) agreement.

Bostan also highlighted the new agricultural income tax in Punjab for earnings above Rs600,000 and the surge in IT sector exports, which grew by 13% in October. "The internet is generating millions of dollars for IT professionals, a key area for future GDP growth," he said.

Bostan emphasised that export sectors have generated $22 billion in the past five months and could reach $44 billion by year's end, setting a historic high.