Karachi, April 2, 2024 – The bullion market in Pakistan witnessed a drop of Rs 500 on Tuesday, halting a recent rally that had brought prices near record highs.
The price of 24-karat gold per tola declined to Rs 237,100 from the previous day’s closing of Rs 237,600 in the domestic market.
This sudden decline comes after a notable surge in gold prices, with the local market experiencing a rise of Rs 14,900 over the course of the last 10 trading sessions. It’s important to note that the gold rates had reached an all-time high of Rs 240,000 per tola on May 10, 2023.
The price of 24-karat gold per 10 grams also experienced a decline, dropping by Rs 429 to reach Rs 203,275 from the previous day’s closing of Rs 203,704 in the domestic markets.
Experts in the bullion market attribute this fall in domestic gold prices to a relaxation in the international markets. The price of gold slipped by $5 to end at $2,273 an ounce, down from the previous day’s closing of $2,278 in the global markets.
The recent volatility in gold prices has been closely watched by investors and traders alike. Gold, often seen as a safe-haven investment during times of economic uncertainty, has experienced fluctuating demand in recent months due to various geopolitical and economic factors.
Analysts suggest that the easing tensions in international markets might have contributed to the decline in gold prices. However, uncertainties surrounding global inflation, central bank policies, and geopolitical tensions continue to influence the direction of gold prices.
Despite the recent drop, many investors remain optimistic about the long-term prospects of gold. The precious metal has historically been considered a hedge against inflation and currency devaluation, making it an attractive investment option in times of economic instability.
In Pakistan, where gold holds cultural significance and is often considered a traditional store of wealth, fluctuations in gold prices can have a significant impact on consumer sentiment and economic activity. The recent drop in gold prices may provide an opportunity for investors to enter the market or for consumers to purchase gold jewelry at a more affordable rate.
As the bullion market continues to react to global economic trends and geopolitical developments, investors will closely monitor any further fluctuations in gold prices, anticipating their potential impact on the broader economy and financial markets.
