Domestic bullion rates fall as international gold prices decline by $35 an ounce

KARACHI: Gold prices in Pakistan fell sharply on Thursday, shedding Rs3,500 per tola as a decline in international bullion prices weighed on the domestic market.

According to data released by the All Pakistan Gems and Jewellers Association, the price of 24-karat gold decreased to Rs483,036 per tola from the previous close of Rs486,536.

The price of 24-karat gold also declined by Rs3,001 per 10 grams, settling at Rs414,125 compared with Rs417,126 in the previous session.

Bullion market experts attributed the decline in domestic gold prices primarily to weakness in international markets. They noted that uncertainty surrounding the Middle East peace process, along with persistent concerns over global inflation, continued to influence investor sentiment towards the precious metal.

International gold prices decline

In the international market, gold prices dropped $35 per ounce to close at $4,605, compared with the previous session’s closing price of $4,640.

The decline in global bullion prices placed additional pressure on domestic gold rates, highlighting the continued sensitivity of Pakistan’s precious metals market to international price movements.

The latest decline comes after gold prices had remained elevated in Pakistan, with movements in the international bullion market and exchange-rate trends continuing to influence domestic rates.

Investors monitor global developments

Market participants are closely monitoring developments in global inflation, geopolitical tensions and the Middle East peace process, which could determine the direction of gold prices in the coming sessions.

Further movements in international bullion prices and currency markets are expected to remain key factors influencing gold rates in Pakistan.