Karachi, October 31, 2024 – Gold prices in Pakistan experienced a significant drop on Thursday, falling by Rs 700 per tola, as global gold prices eased. The price for 24-karat gold per tola declined from the previous day’s record high of Rs 287,900 to Rs 287,200. Similarly, the price for 24-karat gold per 10 grams fell by Rs 600, ending at Rs 246,228 from the prior day’s Rs 246,828.
The easing in local gold prices follows a downward trend in international markets, where gold prices decreased by $7 per ounce, settling at $2,777 from the previous closing of $2,784. Experts in the bullion market have linked the decline in Pakistan’s gold prices to this global dip, explaining that international prices play a key role in determining domestic gold rates.
This recent reduction in gold prices provides some respite to buyers in Pakistan’s domestic markets, which have witnessed a sharp increase in gold rates over recent months. The rise in domestic prices has been driven not only by international price trends but also by fluctuations in the Pakistani rupee. With gold prices reaching an all-time high just a day before, this small decline may encourage some investors to enter the market.
In global markets, gold prices have been influenced by various economic factors, including fluctuations in the dollar and shifts in demand as investors react to market uncertainties. While gold is traditionally viewed as a safe-haven asset, its value can be sensitive to shifts in currency strength, global inflation expectations, and geopolitical events. The recent decline could be attributed to an improvement in global economic stability, leading to a temporary easing in gold prices.
Despite the recent drop, market analysts caution that gold prices could remain volatile in the short term due to ongoing global economic conditions. They note that while the recent dip may encourage some buyers, a strong demand persists for gold as a long-term investment, particularly in uncertain economic times. Analysts also mention that the Pakistani rupee’s performance against the dollar is another factor likely to influence domestic gold prices, as currency fluctuations can directly impact the cost of imported gold.
For now, the price reduction offers a temporary breather for those in the jewelry and bullion markets, though experts predict that if global conditions remain uncertain, further fluctuations in both international and local gold prices can be expected.