Gold prices go down in Pakistan as hopes rise that the IMF programme will be revived.
Gold prices dropped by almost 1% on Wednesday because the rupee went up and people hoped that the International Monetary Fund (IMF) programme would be brought back. This could change the way the economy is doing.
The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) said that the price of 24k gold fell by Rs1,400 per tola and Rs1,200 per 10 grammes to Rs195,600 and Rs167,695, respectively.
People looking for deals took advantage of recent losses, but the outlook for the precious metal was still clouded by the possibility of further recovery of the rupee against the dollar, as optimism about the IMF program’s return can boost the currency market’s mood.
In the last three trading days, the price of a tola of yellow metal went up by a total of Rs3,800. However, the precious metal broke its winning streak today.
On the domestic market, however, silver prices stayed the same at Rs2,150 per tola and Rs1,843.27 per 10 grammes.
On the international market, the price of an ounce of gold went up by $8 to settle at $1,840. Investors didn’t make any big bets because they were waiting for the minutes from the US Federal Reserve’s most recent policy meeting, which could give more information about its plans to raise interest rates.
“The market is paying attention to the Fed minutes, which will be released later today,” said Xiao Fu, an analyst at Bank of China International. “But if there are worries about higher inflation or more persistent inflation, gold prices could face some headwinds.”
The minutes from the Fed’s last meeting are due Wednesday at 6:00 PM GMT. At its meeting on January 31 and February 1, the Fed raised rates by 25 basis points. Rates are expected to go above 5% by May, with a peak of 5.347% in July.
Rising US interest rates have a big effect on gold because they make it less attractive to hold non-yielding bullion.
Wang Tao, a technical analyst at Reuters, says that if gold prices drop below $1,830 per ounce, it could lead to a drop to $1,816.