Karachi, September 12, 2024 – Gold prices in Pakistan experienced a notable decline on Thursday, dropping by Rs 1,000 per tola after reaching an all-time high just a day earlier.
This marks a slight respite for local buyers following record-breaking price levels in the previous session.
According to market reports, the price of 24-karat gold per tola closed at Rs 263,000, down from the previous day’s record high of Rs 264,000 in the domestic markets. Similarly, the price of 24-karat gold per 10 grams fell by Rs 857, closing at Rs 225,480 compared to the previous day’s closing of Rs 226,337.
Global Influence on Local Markets
The decline in domestic gold prices is attributed to a slight dip in the international bullion markets. Globally, the price of gold fell by $8 per ounce, closing at $2,515 compared to the previous day’s rate of $2,524 per ounce. This decrease in international prices has directly impacted the local gold market, leading to a marginal correction in Pakistan’s rates.
Factors Behind the Drop
Bullion market experts suggest that the drop in international prices is a key factor in the local price reduction. Global economic uncertainty, fluctuating currency values, and shifting investor sentiment are often major drivers of gold prices. In recent months, gold has seen a steady rise, driven by global economic concerns and inflationary pressures, which had pushed it to unprecedented levels.
The record high prices in Pakistan had been a result of both rising international gold prices and the devaluation of the Pakistani rupee. With the rupee losing value against major currencies, the cost of imported gold has risen sharply, amplifying the effects of international price movements.
Outlook for Gold Prices
Despite the current drop, market analysts remain cautious about predicting a prolonged decline in gold prices. Gold remains a safe-haven asset for investors during times of economic uncertainty, and global factors such as inflation, geopolitical tensions, and central bank policies will continue to influence its price.
For now, buyers in Pakistan may find some short-term relief with the Rs 1,000 drop, but given the volatility of both the domestic currency and international markets, further fluctuations in gold prices are likely in the near future.
Local jewelers and investors are closely watching the global economic landscape for cues on future price movements. Should the international markets stabilize, or if the Pakistani rupee sees any significant recovery, domestic gold prices could potentially stabilize or see further adjustments.
For now, gold remains a highly sought-after asset, with prices still hovering near record highs, reflecting both global and local economic conditions.
