Gold prices in Pakistan fell sharply on Monday, tracking losses in the international market, as investors awaited clarity from the White House over reports of possible US tariffs on imported gold bars as well as key inflation data that could influence the Federal Reserve's interest rate outlook.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold dropped Rs3,600 per tola to Rs358,800. The rate for 10 grams declined Rs3,086 to Rs307,613. On Saturday, the yellow metal had closed at Rs362,400 per tola after a decrease of Rs300.
Internationally, gold prices retreated as the market weighed unverified reports, circulated late last week by some media outlets, that the US might impose tariffs on one-kilogramme gold bars. The initial report sparked a rally in gold prices, but subsequent denials and the absence of official confirmation from the White House triggered a correction.
"Many are treating it as fake news, but investors are still waiting for an official clarification," said Adnan Agar, Director at Interactive Commodities. He noted that the international market saw gold touch a high of $3,401 per ounce and low of $3,341 before settling near $3,347.
Spot gold was down 1.2% at $3,356.30 and US gold futures for December delivery fell 2.3% to $3,410.50 an ounce by 1257 GMT, according to Reuters.
Agar added that geopolitical developments were also influencing sentiment. "On August 15, Russian President Vladimir Putin is scheduled to meet US President Donald Trump for talks on Ukraine's peace process. If these talks make progress, it could be negative for gold," he explained.
Markets are now awaiting Tuesday's US inflation data, which could shape expectations for Fed policy. Agar cautioned that if the tariff reports were eventually confirmed, gold prices could jump sharply; conversely, successful US-Russia peace talks could pressure the metal further.
Meanwhile, the Pakistani rupee continued its modest advance against the US dollar in the inter-bank market, rising 0.01% to close at 282.45, up two paisa.
Over the previous week, the local currency had strengthened 25 paisa, or 0.09%, closing at 282.47 compared to 282.72 a week earlier, according to data from the State Bank of Pakistan (SBP).
Globally, the US dollar held steady following last week's losses, as investors awaited the release of July US Consumer Price Index (CPI) and monitored trade negotiations between Washington and Beijing ahead of a tariff hike deadline. The dollar index was unchanged at 98.25 after declining 0.4% last week.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ