Gold prices plunge

KARACHI: The local gold prices on Thursday witnessed a drastic fall of Rs4,630 per 10-gram and Rs5,400 per tola on Thursday, as international prices plunged by $65 per ounce after the victory of Donald Trump.
As per All Sindh Saraf and Jewellers Association (ASSJA), the new prices of 10-gram and one-tola (24kt) are Rs237,311 and Rs276,800, respectively, while international gold price stood lower at $2,662 per ounce.
On Oct 30, the domestic 10-gram and one-tola prices hit an all-time high of Rs246,828 and Rs287,900, respectively, due to a $29 surge in international price to $2,784.
ASSJA President Haji Haroon Rasheed Chand said that Trump’s hint towards economic policy changes and efforts to end Ukraine-Russia and Israel-Palestine conflicts made a big impact on the yellow metal prices followed by reports of further cuts in the interest rates by the Federal Reserve.
He said the steep fall of $65 in a single day might have caused jitters among investors, who may lose their investments, while some may start lifting gold in anticipation of any future price hike.
After a big drop in local rates, Mr Chand ruled out the possibility of a positive impact on the sale of jewellery sets as prices are still out of range for many low- and middle-income households, and markets face a dearth of buyers.
The 10-gram and one-tola gold rates in January were Rs188,357 and Rs219,700. Consumers are still paying additional Rs48,954 and Rs57,100.
International gold prices have risen by $580 since Jan 1.
Published in Dawn, November 8th, 2024