Karachi, September 3, 2024 – Gold prices in Pakistan witnessed a notable decline on Tuesday, falling by Rs 1,000 per tola due to a drop in international markets. The price of 24-karat gold per tola closed at Rs 261,500 in local markets, down from the previous day’s closing of Rs 262,500.
Similarly, the price of 24-karat gold per 10 grams saw a decrease of Rs 857, settling at Rs 224,194 compared to the previous day’s closing rate of Rs 225,051. The dip in domestic gold prices reflects the impact of easing trends in the international bullion market, which continues to influence local market conditions.
Experts in the bullion market attributed the drop in gold prices within Pakistan to a broader decline in global markets. On the international front, gold prices fell by $5, ending at $2,495 per ounce, down from the previous closing price of $2,503 per ounce. This global decline is being seen as a response to various economic factors, including a stronger U.S. dollar and rising bond yields, which typically reduce the appeal of non-yielding assets like gold.
Analysts noted that the recent strength of the U.S. dollar, combined with better-than-expected economic data from the United States, has contributed to the downward pressure on gold prices globally. As a safe-haven asset, gold tends to lose its luster when the dollar strengthens and yields on government bonds rise, as investors seek better returns elsewhere.
In Pakistan, the fluctuation in gold prices is closely linked to international market trends, given that the country imports a significant portion of its gold. As a result, local prices are heavily influenced by changes in the global market, as well as the exchange rate of the Pakistani rupee against the U.S. dollar. Any appreciation of the rupee can further impact gold prices, making them cheaper in local currency terms.
Traders in the local bullion market expect that gold prices could remain under pressure in the short term if the global downward trend continues. However, they also note that geopolitical uncertainties and inflation concerns could still provide support for gold prices, given its traditional role as a hedge against economic instability.
As the situation unfolds, investors and consumers in Pakistan are closely monitoring both local and international market dynamics to gauge the future direction of gold prices. For now, the decline offers a slight reprieve to buyers looking to invest in gold or make jewelry purchases, capitalizing on the lower prices.
