Karachi, October 28, 2024 – Gold prices in Pakistan fell by Rs 900 on Monday, closing at Rs 283,400 per tola of 24-karat, down from Saturday’s Rs 284,300. This decrease reflects intensified volatility in both domestic and global bullion markets, driven largely by geopolitical tensions and economic uncertainty.
The recent decline follows a record high of Rs 285,400 per tola, reached on October 23, 2024. According to analysts, fluctuating gold prices are tied to ongoing tensions in the Middle East, which have kept global investors on edge and impacted safe-haven assets like gold. Market experts report that these tensions have led to a seesaw effect on gold values, affecting not only Pakistan but international bullion markets as well.
In Pakistan’s domestic markets, the 24-karat gold per 10 grams dropped by Rs 771, closing at Rs 242,970 from the previous rate of Rs 243,741. This dip aligns with global price movements, as international gold prices slipped by $9, closing at $2,739 per ounce from the previous $2,748. This consistent decline suggests the market remains sensitive to regional conflicts, economic policies, and fluctuations in currency strength, particularly in emerging markets.
Market experts explain that geopolitical concerns have spurred international gold buyers to adopt a cautious stance, with some investors selling off gold to capitalize on recent price surges, while others hold their positions as a hedge against anticipated inflation and market uncertainty. This oscillation has resulted in unpredictable trading patterns and price corrections in both the international and local markets.
Analysts also cite the interplay between the U.S. dollar and global gold prices as another contributing factor to recent price swings. As the dollar strengthened amidst uncertain economic conditions, demand for gold temporarily softened, leading to minor but noticeable drops in international rates. Given Pakistan’s reliance on imports for its gold supply, these fluctuations in the international market have an immediate and significant impact on domestic pricing.
Pakistan’s bullion market, though subject to international pricing trends, also reflects unique domestic pressures, such as fluctuating demand during wedding seasons and festive periods, which can lead to sudden price shifts. As Pakistan’s currency remains sensitive to these external influences, gold prices within the country are likely to remain volatile in the coming weeks.
With geopolitical and economic uncertainties showing no signs of easing, market analysts predict that gold will continue to experience price fluctuations. Investors, both locally and internationally, are advised to approach the market with caution, as prices remain susceptible to rapid changes influenced by regional tensions and global economic shifts.