Gold prices experienced a notable drop on Monday after a week of gains, reflecting global trends. In Pakistan, precious metal prices decreased by Rs4,300, closing at Rs278,400 per tola (11.66 grams). The All Pakistan Sarafa Gems and Jewellers Association attributed this decline to international factors, noting that gold had peaked at Rs287,900 per tola just last month.
Internationally, gold prices fell by $43, settling at $2,672 per ounce (31.10 grams). Spot gold decreased by 1% to $2,686.73 per ounce after a 2% drop in the session. Similarly, US gold futures declined by 0.9%, closing at $2,688.40.
This decrease occurred as investors took profits following a five-session rally pushing gold to a three-week high. Additionally, the appointment of Scott Bessent as the new US Treasury Secretary influenced the market, diminishing gold’s appeal as a haven.
UBS analyst Giovanni Staunovo explained that the pullback resulted primarily from profit-taking after the rally and optimism about Bessent’s nomination.
Gold is typically seen as a reliable investment during economic and political uncertainty. However, Bessent’s nomination brought some relief, with analysts predicting that his market savvy and potential tariff policies might reduce the need for safe-haven investments like gold.
Rupee Holds Ground
The Pakistani rupee remained stable on Monday, closing at Rs277.75 against the US dollar in the interbank market, a slight improvement from Rs277.76 on Friday, according to the State Bank of Pakistan. The currency experienced a minor decline of Rs0.09 or 0.03% last week, mainly due to external oil payment pressures.
Globally, the US dollar pulled back from two-year highs as US Treasury yields declined sharply. Following Bessent’s nomination, yields on 10-year Treasuries dropped more than 11 basis points to below 4.3%. The bond market welcomed his appointment, seeing him as a fiscally conservative Wall Street veteran likely to promote stable economic policies. Two-year yields also fell.
