Gold faces second weekly drop in Pakistan on rate hike jitters

Gold prices edged lower on Saturday and were set for a second straight weekly drop, as investors remained wary of impending interest rate hikes by the State Bank of Pakistan (SBP) to tame high inflation.

While gold is considered an inflation hedge but is highly sensitive to rising interest rates, which increase the opportunity cost of holding the non-yielding bullion.

Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) declined by Rs1,000 per tola and Rs858 per 10 grams to settle at Rs194,100 and Rs166,409, respectively.

More to follow…