Karachi, November 12, 2024 – Gold prices in Pakistan on Tuesday recorded their sharpest single-day plunge, dropping by an astonishing Rs 7,000, driven by a substantial decline in global gold markets.
In Karachi’s bullion market, the 24-karat gold price per tola fell to Rs 270,500, down from Monday’s closing of Rs 277,500. The drop follows a high of Rs 287,900 per tola, a record level reached on October 30, 2024. Since then, local gold prices have slipped by Rs 17,400, reflecting ongoing volatility and the precious metal’s diminished allure amid shifting investment trends.
The price for 24-karat gold per 10 grams also saw a notable decrease, shedding Rs 6,000 to settle at Rs 231,911 from the previous day’s Rs 237,911. This sharp decline aligns with a global downward trend as investors pivot away from traditional safe-haven assets.
Market analysts in Pakistan attribute this dramatic fall to multiple external factors. One primary reason is a global decline in gold prices, which fell by $77 to close at $2,593 per ounce on Tuesday, down from $2,670. This drop was exacerbated by a surge in cryptocurrency markets, as investors globally shift their focus from commodities like gold to high-yield digital assets. The rapid appreciation of leading cryptocurrencies has made them an appealing investment alternative, pulling funds away from traditional assets like gold.
Additionally, geopolitical developments have played a role in this sudden downturn. The recent U.S. elections and expectations of eased Middle East tensions have contributed to a shift in market sentiment, reducing the perceived need for safe-haven investments like gold. Historically, during times of uncertainty, investors tend to flock to gold, driving prices higher. However, a sense of potential stability has led many to recalibrate their portfolios.
For Pakistan, where gold is not only a store of value but also a crucial part of cultural practices, this price drop could have mixed implications. While lower prices may benefit consumers looking to buy for weddings or investments, those who had already invested at previous highs could see a loss in the short term.
This unprecedented plunge in gold prices underscores the global commodity market’s vulnerability to fast-evolving economic and political dynamics, marking a shift in investor behavior amidst modern-day financial landscapes.
