Karachi, April 27, 2024 – Gold prices in Pakistan experienced a significant drop on Saturday, decreasing by Rs 600 as the international market showed a downward trend.
The adjustment saw the cost of 24-karat gold per tola come down to Rs 244,400 from the previous day’s rate of Rs 245,000, according to figures released by the Karachi Sarafa Association.
This shift in prices marks a continuation of the volatility observed in the bullion market, following a record high of Rs 252,200 per tola on April 20, 2024. Analysts have noted that the domestic gold prices are closely following the global trend, which has been generally bearish over the past week.
Alongside the drop in per tola rates, the price for 24-karat gold per 10 grams also saw a decrease, falling by Rs 514 to settle at Rs 209,534, down from Rs 210,048. This price movement is reflective of broader economic dynamics and investor sentiments which are currently influencing the precious metals market both locally and globally.
Globally, the price of gold per ounce fell by $6, closing at $2,337 compared to the previous day’s closing of $2,343. Market experts suggest that the slight easing in global prices can be attributed to a stronger US dollar and rising bond yields, which typically diminish the appeal of holding gold as an investment.
“The recent adjustments in the price of gold are a direct reflection of international market trends,” said Karim, a prominent bullion trader in Karachi. “Investors are likely reacting to the macroeconomic signals, especially from the United States, where the economic data released this week has been stronger than expected.”
Furthermore, domestic factors also play a crucial role in the day-to-day pricing of gold in Pakistan. The local currency’s strength, import policies related to precious metals, and changes in demand during festive or wedding seasons are all influential.
“The fluctuation in gold prices is also partially impacted by changes in the local currency exchange rate against the dollar. Any strengthening or weakening of the rupee directly affects the import costs and thus the market price,” explained Mehboob, an analyst at Karachi’s financial district.
While current trends point to a softening in prices, experts advise caution, highlighting that the market remains sensitive to both local and international economic indicators. Potential buyers in the market might see the decrease as a buying opportunity, but the uncertainty in price trends calls for a careful approach.
As Pakistan’s economy continues to navigate through inflationary pressures and other financial challenges, the gold market remains a critical barometer for both investor confidence and consumer sentiment.
Investors and consumers are therefore keeping a close watch on the movements in gold prices, as these often provide insights into broader economic conditions and future financial stability in the country. As always, the advice from financial advisors is to keep diversified portfolios to manage risks effectively in these volatile markets.
