Gold prices dropped by Rs1,700 in Pakistan, settling at Rs274,500 per tola on Monday. This decline continues a recent trend in both local and international markets. On Friday, the gold price per tola had fallen by Rs1,100. Globally, gold prices dropped $17 to $2,633 per ounce, influenced by stronger US dollar performance. The rising dollar index, up 0.5%, made bullion pricier for international buyers, reflecting notable gold market trends.
Adnan Agar, Director of Interactive Commodities, explained these gold price changes are within expected ranges. He noted the absence of major market events, with US employment data in November likely to impact future trends. Holiday season trading activity might also pick up by January, adding momentum to gold market trends.
The Pakistani rupee showed slight appreciation, gaining 0.03% to close at 277.97 against the US dollar on Monday. This minor recovery follows a dip below 278 last week, marking the first in over 10 weeks. Malik Bostan, Chairman of the Forex Association of Pakistan, attributed this rupee appreciation to improved political stability and growing confidence in the Pakistani rupee exchange rate. He predicted the rupee could stabilize further, potentially nearing 250.
Economic indicators in Pakistan also showed improvement in November 2024. The trade deficit Pakistan faced narrowed by 19% year-on-year (YoY) to $1.6 billion. Exports grew by 9% YoY to $2.8 billion, although they fell by 6% month-on-month (MoM). Imports decreased by 3% YoY and 4% MoM, reaching $4.4 billion. Over the first five months of FY25, the trade deficit Pakistan recorded shrank by 7% YoY to $8.7 billion.
Inflation in Pakistan significantly improved, hitting a 79-month low of 4.9% YoY in November 2024. This was a sharp drop from 29.23% in November 2023, the lowest rate since April 2018. The Consumer Price Index (CPI) also declined to 4.9% in November from 7.2% in October. For the first five months of FY25, average inflation in Pakistan stood at 7.88%, compared to 28.62% during the same period last year.
These positive trends signal recovery in Pakistan’s economy. Experts suggest that a stable Pakistani rupee exchange rate, reduced trade deficit Pakistan metrics, and lower inflation in Pakistan could boost economic confidence further in the coming months.
