Gold prices in Pakistan decreased by Rs1,700 to Rs274,500 per tola on Monday, extending the recent downward trend in sync with global markets. According to the All Pakistan Sarafa Gems and Jewellers Association, the price fell by Rs1,100 to Rs276,200 per tola (11.66 grams). Concurrently, international gold prices dropped by $17 to $2,633 per ounce.
Adnan Agar, Director of Interactive Commodities, stated that these fluctuations are expected and within typical ranges. He highlighted the lack of significant market-moving events as a reason for the limited price movements, though upcoming US employment data for November could influence future trends. Agar also mentioned that market activity might increase starting in early January with the holiday season approaching.
The Pakistani rupee appreciated slightly by 0.03% in the currency market to close at 277.97 against the US dollar in the interbank market on Monday. This recovery followed a 0.10% decline last week when the rupee slipped below 278 for the first time in over ten weeks.
Malik Bostan, Chairman of the Forex Association of Pakistan, commented on the rupee’s recovery, suggesting it might stabilize further, potentially around 250. He noted that the rupee had rebounded from a dip caused by political unrest on November 24, indicating restored confidence in the government.
November’s economic indicators also showed positive signs. The trade deficit narrowed by 19% year-on-year to $1.6 billion. While exports rose 9% year-on-year to $2.8 billion, they fell 6% month-on-month. Imports decreased 3% year-on-year and 4% month-on-month to $4.4 billion.
The average inflation rate for the first five months of FY25 was 7.88%, significantly lower than the 28.62% in the corresponding period last year. The Consumer Price Index for November 2024 fell to 4.9% year-on-year from 7.2% in October, bringing the 5-month average to 7.9%, a notable improvement from 28.6% in the previous fiscal year.
Read: Pakistan’s Inflation Drops to 4.9% in November 2024, Marking Six-Year Low
