Gold prices fall in global, local markets

Price of gold per tola falls by Rs1,000

Gold prices declined for the second consecutive day in both international and domestic markets on Wednesday. In the global bullion market, the price of gold dropped by $10 per ounce to $3,970.

In Pakistan, the price of gold per tola fell by Rs1,000 to Rs419,362, while the rate for 10 grams decreased by Rs857 to Rs359,535.

Dealers attributed the fall to reduced demand and fluctuations in international prices.

Read: Gold drops Rs3,500/tola as dollar strengthens

Earlier on Tuesday, gold prices in Pakistan fell, mirroring the decline in international bullion rates as the US dollar surged to a three-month high and investors awaited key US economic data for cues on the Federal Reserve's monetary policy direction.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs3,500 per tola to settle at Rs420,362, while the rate for 10 grams decreased by Rs3,001 to Rs360,392. A day earlier, gold prices had risen by Rs1,300 per tola to close at Rs423,862.

Commenting on the trend, Adnan Agar, Director at Interactive Commodities, said the market was undergoing a downward correction. "Gold has come down; its high was $4,000 and the low was $3,928, with the market later at $3,953.

The strongest support lies at $3,914. If this level breaks, the market could move towards $3,850 and $3,800, from where a rebound of $150-200 or more is possible," he noted, adding that the outlook remained bearish in the short term.