Gold Prices Dip by Rs 900 in Pakistan Amid Global Market Trends

Gold Prices Dip by Rs 900 in Pakistan Amid Global Market Trends

Karachi, May 2, 2024 – Gold prices witnessed a notable decrease in Pakistan on Thursday, with a decline of Rs 900 per tola, reflecting trends in the global market.

The price for 24-karat gold per tola dropped to Rs 241,000, down from Rs 241,900 at the previous close, according to data from local market traders. Similarly, the price per 10 grams of 24-karat gold fell by Rs 771, settling at Rs 206,619 compared to Rs 207,390 previously.

This shift in gold prices aligns with movements in the international bullion market, where the price of gold fell by $8, closing at $2,308 an ounce, down from $2,316.

Market analysts have pointed to several global economic indicators as catalysts for the downturn in gold prices. Key factors include strengthening of the U.S. dollar and the anticipation of interest rate hikes by major central banks, which tend to decrease investors’ appetite for gold.

“Gold is traditionally seen as a safe haven in times of economic uncertainty,” explained Zainab Malik, a senior commodities analyst at a local financial services firm. “However, with the U.S. dollar gaining strength and investors expecting further rate increases, we are seeing a shift away from bullish sentiment in the gold market.”

Furthermore, the decrease in local gold prices could also be attributed to subdued demand in the domestic market. “Apart from international factors, domestic demand plays a crucial role in setting prices locally,” Malik added. “With ongoing economic challenges and inflation concerns, consumer buying power is strained, leading to lower demand for luxury goods, including gold.”

Jewelers across the country have reported a decline in customers, which they attribute to the rising prices over the past months that have now started to correct somewhat. “The drop in prices might bring some relief to buyers ahead of the wedding season, but overall sentiment remains cautious,” noted a prominent jeweler in Karachi.

Investors and consumers alike are keeping a close eye on both global economic developments and local market dynamics to gauge the future trajectory of gold prices. While the current trend indicates a downturn, the volatile nature of global markets means predictions remain tentative.

As Pakistan navigates through these fluctuating economic times, the impact on commodities like gold continues to be a significant indicator of broader economic health and consumer confidence.