In a significant shift on Thursday, gold prices in Pakistan witnessed a notable decrease. The price of 24-karat gold fell by Rs1,200 per tola, bringing it to Rs240,700 per tola.
This reduction reflects the ongoing challenges in purchasing power, with the price being set Rs1,500 below its actual market value.
The Karachi Sarafa Association reported that the price for 24-karat gold was Rs206,361 per 10 grammes, a decrease of Rs1,029. Meanwhile, 22-karat gold was quoted at Rs189,165 per 10 grammes, reflecting a similar downward trend.
In contrast, silver prices remained stable in the domestic market. The price of 24-karat silver held steady at Rs2,750 per tola and Rs2,358 per 10 grammes, indicating no change from previous rates.
Globally, the gold market also experienced a decline. Spot gold was traded near $2,305 an ounce, marking a decrease of $15.5 or 0.67 per cent from the previous session. This downturn follows a report indicating that the US core consumer price index fell to its lowest level in over three years, suggesting a potential for faster policy easing.
Bloomberg reported that the Federal Reserve has adjusted its expectations, now projecting just one quarter-point interest rate cut this year, down from the three cuts anticipated in March.
Swap traders are currently pricing in a 25-basis-point rate cut by November, with a 75 per cent probability of a similar reduction by year-end.
This is a shift from the 50 per cent chance of a second cut that was forecasted two days prior. US producer prices, expected to be released later on Thursday, may provide further indications of market trends.
Overall, the drop in gold prices reflects both domestic economic pressures and global market adjustments, offering a complex landscape for investors and consumers alike.
