Karachi, May 7, 2024 – Gold prices in Pakistan experienced a slight decline on Tuesday, with the rate of 24-karat gold per tola dropping to Rs 240,000, showing a reduction of Rs 500 from the previous day’s closing price of Rs 240,500.
This easing in prices reflects broader trends observed in international bullion markets.
In addition to the change in per tola pricing, the rate for 10 grams of 24-karat gold also decreased by Rs 429, closing at Rs 205,761 compared to Rs 206,190 at the end of the previous trading day. Market experts have linked this decrease to a downturn in the global market where gold prices fell by $5 to settle at $2,317 per ounce, down from $2,322.
Analysts suggest that the decrease in gold prices is influenced by several factors including fluctuations in international market demand, currency exchange rates, and macroeconomic indicators. “The slight decrease in gold prices both locally and globally can be attributed to a combination of strengthening local currencies against the dollar and investor shifts towards more liquid assets,” explained Zainab Abbas, a senior financial analyst at a local investment firm.
The reduction in gold prices comes as a relief to local jewelers and consumers who have been facing high prices for months. “This is a welcome change for buyers ahead of the upcoming wedding season,” said Abdul Rahim, a jeweler in Karachi. “A lower gold price reduces the overall cost of jewelry, making it slightly more accessible for the average consumer.”
However, despite the current decrease, prices remain high compared to historical standards, which continues to affect gold’s demand in traditional markets. The high cost of gold has led to a noticeable shift in consumer behavior, with many opting for less expensive alternatives or delaying purchases of gold jewelry.
The gold market is known for its volatility, and prices can be influenced by a range of geopolitical and economic factors. Investors often turn to gold as a safe-haven asset during times of economic uncertainty. With ongoing global economic challenges and fluctuating markets, experts advise investors and consumers to stay informed and cautious.
“Gold remains a critical part of investment portfolios, particularly in uncertain times. However, potential buyers should be aware of market trends and consider timing their purchases to take advantage of price fluctuations,” Abbas added.
As market watchers continue to monitor these trends, the future of gold prices will likely depend on a complex interplay of global economic conditions and local market dynamics.
