Karachi, September 18, 2024 – Gold prices in Pakistan dropped by Rs 300 per tola on Wednesday, reflecting a broader decline in the global markets. The 24-karat gold rate fell to Rs 267,700 per tola, down from the previous record high of Rs 268,000.
Similarly, the price of 24-karat gold per 10 grams also decreased by Rs 257, settling at Rs 229,510. The last closing rate for 10 grams of gold was Rs 229,767, marking a notable decline in the local market.
Bullion market experts pointed out that the fall in domestic gold prices was directly tied to the dip in international gold prices. On the global front, gold dropped by $18, bringing the price per ounce down to $2,569 from the previous closing of $2,589.
The decline in global gold prices comes amid a series of economic developments, including the stronger performance of the US dollar and rising bond yields. Investors tend to move away from gold in such conditions, as the stronger dollar makes the precious metal more expensive for buyers holding other currencies, while higher yields make bonds a more attractive investment compared to gold, which does not offer any interest or dividends.
Market analysts have observed that fluctuations in international gold prices directly influence Pakistan’s gold market due to the country’s reliance on global market trends. Pakistan imports a significant portion of its gold, which is then priced according to international rates. Any movement in global prices thus has an immediate impact on the local market.
“The drop in international gold prices is the primary reason for the decline in Pakistan’s gold rates today,” said a leading bullion trader in Karachi. “With the global market under pressure and international investors selling off their gold holdings, we’re seeing the effects trickle down to the domestic market.”
Despite the recent dip, experts warn that gold prices remain volatile and subject to change, especially considering ongoing uncertainties in the global economy. Factors such as geopolitical tensions, inflationary concerns, and central bank policies could further impact gold prices in the near future.
For local investors and jewelry buyers, this decline provides an opportunity to purchase gold at a lower price, but market insiders suggest keeping a close watch on both domestic and global trends before making any significant purchases.
As gold remains a traditional hedge against economic uncertainty, its price movements continue to be closely followed by investors and consumers alike, both in Pakistan and around the world.
