Karachi, May 4, 2024 – Gold prices in Pakistan have sustained a downward trend, hitting a new low of Rs 238,000 per Tola on Saturday, amid declining consumer purchasing power and a series of global economic shifts.
The latest decrease saw a Rs 1,600 drop from Friday’s close of Rs 239,600 per Tola in the domestic bullion markets. This marks the sixth consecutive day of decline since April 27, 2024, when the price was recorded at Rs 244,400 per Tola. Additionally, this current price is a stark contrast to the Rs 252,200 peak observed on April 20, 2024, indicating a significant reduction over just two weeks.
In terms of smaller units, gold priced at 24-karat per 10 grams also fell by Rs 1,257, closing at Rs 204,047, down from the previous day’s Rs 205,418. This adjustment reflects broader trends impacting gold prices on a more granular scale.
Experts in the bullion market link this decrease to a combination of local and international factors. Domestically, reduced buying power has played a crucial role, as economic pressures have tightened household budgets, subsequently affecting luxury goods and investment commodities like gold.
Interestingly, this downtrend in local prices comes in contrast to the movements observed in the international gold market, where prices have shown an uptick. The price for an ounce of gold in the global market rose by $4, closing at $2,301 from the previous day’s $2,297. This divergence between local and global trends can be attributed to fluctuations in the Pakistani rupee against the dollar and differing market dynamics.
Economic analysts suggest that the decreased local demand for gold can be traced back to broader economic concerns such as inflation and uncertainties in financial markets, which tend to push consumers towards more liquid and less volatile investment options. Additionally, with the approaching Eid festival, traditionally a time of heightened gold purchases, the current pricing dynamics may affect the market’s usual sales spike.
Looking forward, market watchers are cautious but not entirely pessimistic. The upcoming weeks could see stabilization in prices if international market trends permeate the local market, and if there is a revival in consumer confidence post-Eid. However, the complex interplay of global economic conditions, local currency stability, and consumer sentiment will be crucial in determining the future trajectory of gold prices in Pakistan.
