Gold prices drop in domestic, global markets
In 2006-07, a 1 percent withholding tax was imposed on commercial imports of gold in the country. Photo: Express News
Gold prices fell in both international and domestic markets on Thursday, with local rates declining by Rs5,000 per tola.
In the global bullion market, gold dropped by $50 per ounce, settling at $4,042.
Following the international decline, the price of gold in Pakistan decreased to Rs426,562 per tola. The rate for 10 grams also fell by Rs4,286, reaching Rs365,708.
Jewellers said the drop reflected global market corrections and reduced local demand.
Read: Gold prices rise ahead of key US data
With bullish underlying factors on Wednesday, gold prices in Pakistan climbed, tracking a sharp rise in the international market, where the precious metal gained more than 1% as investors turned to safe-haven assets ahead of crucial US economic data releases.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola rose by Rs7,900 to Rs431,562. The rate for 10 grams increased by Rs6,773, closing at Rs369,994. The increase comes a day after prices fell sharply, with the per-tola rate declining by Rs7,000 to Rs423,662 on Tuesday.
Internationally, gold surged as markets awaited two major triggers – the release of the US Federal Reserve's meeting minutes scheduled for late Wednesday night and the delayed US employment data expected on Thursday. Both indicators are seen as key determinants of the Fed's policy direction and could sway investor sentiment significantly.