Local bullion rates remain unchanged as US central bank signals more work is needed to bring inflation under control.
Image: Business Recorder
Gold prices remained unchanged in Pakistan on Saturday despite a sharp decline in international markets following growing expectations of a US Federal Reserve interest rate hike.
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) kept the price of 24-karat gold at Rs483,036 per tola, unchanged from Thursday’s close. The 10-gram rate also remained steady at Rs414,125.
International gold prices, meanwhile, fell by more than 3% on Friday after Federal Reserve Chairman Kevin Warsh indicated that the central bank may need to raise interest rates if inflation fails to show convincing progress towards its 2% target.
Warsh said the Fed still has “work to do” on inflation, prompting traders to sharply increase expectations of a September rate hike. The prospect of higher interest rates has weighed on gold, which does not generate interest income, while a stronger US dollar has added further pressure.
Despite the global decline, domestic gold prices held firm, highlighting the impact of local market dynamics and currency movements on bullion rates in Pakistan.
Silver, meanwhile, gained Rs180 to reach Rs7,509 per tola in the local market.
