Karachi, October 5, 2024 – The gold prices in Pakistan witnessed a notable decrease on Saturday, dropping by Rs 700 per Tola due to a parallel decline in international markets. The price of 24-karat gold per Tola settled at Rs 275,500, down from the previous day’s closing of Rs 276,200 in local bullion markets.
This recent drop marks a continuation of volatile trading trends in the gold market since the metal hit a record high of Rs 277,000 per Tola on September 26, 2024. Market fluctuations over the past week have been driven by changing international dynamics, which have consistently influenced the local market.
Similarly, the price of 24-karat gold per 10 grams also saw a decrease of Rs 600, closing at Rs 236,197 from the previous day’s rate of Rs 236,797. The ongoing volatility has left investors and market participants on edge as they attempt to navigate fluctuating prices and uncertain market conditions.
Bullion market experts in Pakistan have attributed this decline in local gold prices primarily to the global downward trend. On the international front, gold prices dropped by $7, with the price per ounce settling at $2,653, compared to the previous day’s closing of $2,660. The international drop has caused a ripple effect across several markets, including Pakistan, where gold remains a popular investment and store of value.
The global decline in gold prices is partly due to expectations surrounding future interest rate hikes by major central banks, including the U.S. Federal Reserve, which could impact the value of safe-haven assets like gold. Historically, when interest rates rise, the opportunity cost of holding non-yielding assets like gold increases, leading to a drop in prices. However, the recent dip in prices comes after weeks of steady gains, signaling potential market corrections.
The fluctuating nature of gold prices has prompted many investors in Pakistan to remain cautious, with some opting to sell their holdings to take advantage of high prices before further declines. Meanwhile, others see the price drop as an opportunity to buy, anticipating future gains.
As global markets continue to face economic uncertainty, the gold market is expected to remain unpredictable, with local prices in Pakistan closely tracking international trends in the near future.