Gold Prices Fall for Fifth Consecutive Day in Pakistan

Gold Prices Fall for Fifth Consecutive Day in Pakistan

Karachi, May 3, 2024 – Gold prices in Pakistan have extended their decline for the fifth consecutive day, reflecting trends in international markets. On Friday, the rate for 24-karat gold per Tola fell by Rs 1,400, closing at Rs 239,600 compared to Rs 241,000 the previous day.

This ongoing slide in gold prices began on April 26, 2024, when the rate for a Tola was recorded at Rs 245,000 in domestic markets. Since then, prices have steadily decreased, shedding a total of Rs 5,400 per Tola in just over a week.

Similarly, the price for 24-karat gold per 10 grams also witnessed a downturn, decreasing by Rs 1,201 to settle at Rs 205,418 from the previous day’s closing of Rs 206,619.

Analysts in the bullion market are pointing to the parallel decline in international gold prices as the primary driver behind the local downturn. In the global market, gold prices have decreased by $11, closing at $2,297 per ounce, down from $2,308.

Experts suggest that a combination of factors is influencing the global dip, including strengthening currencies, shifts in investor confidence towards more liquid assets, and anticipations of changes in monetary policies by major central banks. These factors have also prompted local investors and consumers to exhibit caution, contributing to the dip in local gold prices.

The falling gold prices have had mixed impacts across various sectors. While consumers looking to buy gold may find this a favorable time, investors who use gold as a hedge against inflation and currency devaluation might be re-evaluating their strategies. Additionally, the jewelry industry, which relies heavily on consumer interest in gold, could be seeing changes in demand patterns.

“Gold prices are quite sensitive to international market trends and local economic factors,” explained Naveen Khalid, a senior analyst at a Karachi-based financial services firm. “The current drop could present a buying opportunity for some, but for those holding large amounts of gold, it’s a reason to reassess their investment positions.”

Looking ahead, market watchers are cautious about predicting the future movement of gold prices, as the global economic landscape continues to be unpredictable. Factors such as geopolitical tensions, economic recovery rates from the COVID-19 pandemic, and central bank policies will play critical roles in determining the direction of both local and international gold markets.

As the situation develops, both potential buyers and existing investors are advised to stay informed and consider expert financial advice when dealing with precious metals in these volatile times.