Precious metal weakens as international rates and inflation shift investor sentiment
KARACHI: Gold prices in Pakistan recorded a sharp decline on Tuesday, falling by Rs10,400 per tola as investors reduced exposure to safe-haven assets amid changing global economic conditions.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold settled at Rs432,236 per tola, compared with Rs442,636 in the previous trading session.
The drop reflects continued volatility in the bullion market, driven by shifting expectations around global inflation and interest rates.
Per 10 Grams Rate Also Moves Lower
The price of 24-karat gold per 10 grams also declined significantly, falling by Rs9,360 to Rs368,985, compared with Rs378,345 a day earlier.
The downward movement indicates broad-based pressure across domestic bullion pricing, tracking international trends.
International Gold Market Under Pressure
In global markets, gold prices fell by $104 per ounce, settling at around $4,098, as investor sentiment shifted towards riskier assets.
Market analysts said the decline was driven by expectations that major economies may maintain higher interest rates for a longer period, reducing the appeal of non-yielding assets such as gold.
Improved risk appetite in global financial markets also contributed to reduced demand for safe-haven investments.
Investor Sentiment Drives Market Direction
Analysts noted that gold prices remain highly sensitive to macroeconomic indicators, particularly inflation data and monetary policy decisions from major central banks.
The recent decline reflects weakening demand for safe-haven assets as investors adjust portfolios in response to global economic signals.
However, experts cautioned that volatility is likely to persist in the coming weeks, with gold prices reacting quickly to any changes in interest rate expectations or geopolitical developments.
