Karachi, September 23, 2024 – After a series of record-breaking increases, gold prices in Pakistan took a downturn on Monday, with the per tola price of 24-karat gold dropping by Rs 600. The new price for gold settled at Rs 271,900 per tola, compared to the previous all-time high of Rs 272,500.
Similarly, the price of 24-karat gold per 10 grams decreased by Rs 471, closing at Rs 233,110 from the previous day’s rate of Rs 233,625 in the domestic markets. The decline marks the first break in what had been a consistent upward trend in gold prices across Pakistan in recent weeks.
Factors Behind the Drop
Experts in the bullion market attributed the drop in local gold prices to the easing of prices in the international market. On the global stage, gold prices fell by $5 per ounce, closing at $2,617 from the previous price of $2,622 per ounce. This slight dip in international gold prices has had a direct impact on the Pakistani market, causing a marginal but notable drop.
Gold prices in Pakistan are closely tied to the movements in the international market, particularly because of the country’s reliance on imports for precious metals. Any fluctuation in global gold prices typically reverberates in the domestic market. As a result, the $5 decline in international prices has translated into a Rs 600 drop per tola locally.
Recent Gold Price Surge
Before Monday’s decline, gold prices had been steadily rising in Pakistan, with the market witnessing a series of record highs. Several factors contributed to this surge, including the depreciation of the Pakistani rupee against the US dollar, geopolitical uncertainties, and rising inflation. These factors have driven investors toward gold as a safe-haven asset, causing the demand and prices for the precious metal to soar.
Additionally, domestic economic pressures, such as high inflation and reduced purchasing power, have pushed many investors and individuals to hold gold as a store of value. This trend has been exacerbated by concerns over global economic instability and fluctuating oil prices, leading to increased volatility in the international gold market.
Outlook for Gold Prices
Despite Monday’s drop, many analysts remain cautious about predicting a prolonged decline in gold prices. While the easing of prices in international markets has provided some temporary relief, market conditions remain volatile, and the long-term trajectory for gold prices is uncertain. Factors such as the performance of the US dollar, inflation rates, and central bank policies around the world could continue to influence gold prices in the coming months.
For now, the Rs 600 drop signals a temporary reprieve for local buyers, but whether it will lead to a sustained downward trend or just a short-term correction remains to be seen.
