Karachi, April 30, 2024 – Gold prices in Pakistan witnessed a sharp decline, with the price per tola of 24-karat gold falling to Rs 241,900, a Rs 2,000 drop from Monday’s closing price of Rs 243,900.
This significant reduction reflects broader trends in the international markets, where gold prices also dipped.
Similarly, the price for 24-karat gold per 10 grams in the domestic market saw a decrease, settling at Rs 207,390 after a drop of Rs 1,715 from the previous day’s figure of Rs 209,105. The downward trend in gold prices is aligned with the recent fluctuations in global economic indicators, particularly in the bullion market where gold closed at $2,316 an ounce, down $19 from $2,335.
Economic experts and market analysts are closely monitoring these changes, attributing the decline primarily to shifts in international market sentiments. “The decrease in international gold prices has had a direct impact on the local rates as Pakistan heavily relies on the global market trends,” explained Ahmad Sohail, a Karachi-based senior commodities analyst. “Investors are possibly reacting to the latest economic cues from major economies, which could be influencing their confidence in safer assets like gold.”
The global drop in gold prices can be linked to several factors, including strengthened currency values in key markets, changes in monetary policy expectations, and improved economic data from leading economies. These elements often lead investors to pivot towards more risk-oriented assets, reducing the demand for gold, typically seen as a safe haven during economic uncertainty.
In Pakistan, the drop in gold prices might also bring some relief to buyers in the domestic market, particularly with the wedding season approaching, a time when the demand for gold traditionally increases. “The current dip in prices could increase jewelry buying, but it all depends on how stable these rates remain,” said Ayesha Ahmed, a gold jewelry retailer in Karachi. “Buyers are very price-sensitive and quick fluctuations can deter them from making large purchases.”
However, the decrease in gold prices also raises concerns among investors who view gold as a long-term investment. “Many Pakistani families buy gold as a form of savings, and a drop in prices can affect their investment value,” added Sohail. “It’s a double-edged sword because while lower prices can boost local consumption, they can also lead to reduced investment in gold.”
Furthermore, financial analysts suggest keeping an eye on international economic developments, including any further adjustments in U.S. interest rates, which significantly influence global investment trends. Any such changes could potentially reverse or accelerate the trend in gold prices.
As the market adapts to these new price levels, both consumers and investors in Pakistan’s gold market remain cautious, making calculated moves based on both local and international economic signals. Whether this price drop is a temporary dip or a sign of a longer-term trend will depend on upcoming global economic events and their impacts on investor sentiment across various asset classes.
