The impact of the recent decline in the international gold price was also felt in Pakistan, with the price of a tola dropping by a massive Rs5,400 on Thursday, clocking in at Rs276,800.
Similarly, 10-gram gold was sold at Rs237,311 after it recorded a significant decrease of Rs4,630, according to rates shared by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA).
As per market experts, the recent upward trajectory of gold prices, which hit an all-time high of Rs287,900 per tola in Pakistan on October 31, was disrupted due to uncertainties regarding the US elections.
“The market was anticipating a surge in gold prices if Kamala Harris won the US elections, while the situation would have reversed in case of Donald Trump’s ascension to the White House,” Muhammad Adnan Qadri, Chairman Southern Zone Pakistan Gemstone & Minerals Association (PGMA), told Business Recorder.
On Wednesday, Republican candidate Donald Trump was elected the 47th President of the United States (US), capping a remarkable comeback four years after he was voted out of the White House, beating Democrat Vice President Kamala Harris to retake the President’s office.
Trump’s return to office influenced international market dynamics, with gold being no exception.
Globally speaking, gold prices have come down from a record high of $2,790.15 per ounce last week to $2,663.02 per ounce, as of 0018 GMT, registering a decrease of nearly $130.
This is being reflected on the local front as well.
Pakistan is an importer of gold so its price depends on two factors i.e. the international rate and the value of the US dollar. With the rupee-dollar exchange rate stable, the decline is primarily attributed to the drop in the international rate.
However, analysts are now focused on the upcoming Federal Reserve’s policy rate decision later today.
“If the Fed cuts its policy rate, which is highly likely, the gold market will regain its upward momentum,” said Qadri, who expects a rate cut of 0.25%.
“However, there could be a surprise if the Fed maintains its policy stance, this will drive the gold price even lower,” he added.