Dollar's Rise Gold's Drops
Gold prices in Karachi plunge by Rs4,630 per 10 grams due to a $65 drop in global rates following Trump’s election. Despite the dip, prices remain high for many households.
On Thursday, gold prices in Karachi saw a sharp drop, with rates falling by Rs4,630 per 10 grams and Rs5,400 per tola. This decline followed a $65 decrease in international gold prices, now priced at $2,662 per ounce, spurred by Donald Trump's election victory.
The All Sindh Saraf and Jewellers Association (ASSJA) reports that 24-karat gold now costs Rs237,311 per 10 grams and Rs276,800 per tola. Previously, these rates had hit record highs on October 30, at Rs246,828 and Rs287,900, driven by a $29 surge in global prices.
ASSJA President Haji Haroon Rasheed Chand attributes this drop to potential shifts in Trump’s economic policies and his steps towards resolving the Ukraine-Russia and Israel-Palestine conflicts. Possible interest rate cuts by the Federal Reserve also contributed. Chand notes that, while some investors might start buying gold in anticipation of a future price rise, many may remain cautious due to this significant price shift.
Despite the decrease, Chand doesn’t foresee a surge in jewellery sales, as high prices remain a barrier for low- and middle-income buyers. In reality, consumers are still paying Rs48,954 and Rs57,100 more than the January prices of Rs188,357 and Rs219,700 for 10 grams and one tola of gold, respectively.
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