Karachi, July 25, 2024 – The gold prices on Thursday dropped significantly by Rs 2,300 in Pakistan, mirroring a plunge in the international markets.
The sharp decline in global gold prices has directly impacted the domestic market, causing a notable dip in the value of the precious metal.
In the domestic markets of Pakistan, the price of 24-karat gold per tola decreased to Rs 250,500 from the previous day’s closing of Rs 252,800. Similarly, the price of 24-karat gold per 10 grams slipped by Rs 1,972, ending at Rs 214,763 from the last day’s closing of Rs 216,735.
Analysts at the Pakistan Bullion Market attributed this steep fall in domestic gold prices to the sharp decline in the global markets. On the international front, gold experienced a significant drop, falling by $43 to end at $2,370 per ounce from the previous day’s closing of $2,413 per ounce.
The sudden drop in gold prices in Pakistan has left investors and traders in a state of caution. According to market experts in Pakistan, several factors contributed to this decline. A stronger U.S. dollar, coupled with rising bond yields, exerted pressure on gold prices. Additionally, investor sentiment was affected by speculation about potential interest rate hikes by the Federal Reserve, leading to a sell-off in gold.
The local market has been reactive to global trends, with the precious metal’s prices in Pakistan closely following international patterns. The decrease in gold prices has both positive and negative implications for different stakeholders. For consumers, particularly those looking to purchase gold for weddings or investments, the drop in prices could be seen as an opportunity to buy at lower rates. On the other hand, for those holding gold as an investment, the fall in prices represents a decrease in asset value.
Gold traders in Karachi reported a slowdown in market activity, with many buyers and sellers adopting a wait-and-see approach. The uncertainty in the market has led to reduced trading volumes, as participants speculate on whether the prices will stabilize or continue to fluctuate in the coming days.
Market analysts suggest that the future trajectory of gold prices will depend on various economic indicators and global market conditions. Factors such as geopolitical tensions, changes in the global economic outlook, and central bank policies will play crucial roles in determining the movement of gold prices.
As the market continues to respond to global cues, investors are advised to stay informed and cautious. The volatility in gold prices underscores the importance of closely monitoring market trends and making informed decisions based on the latest data and expert analysis.