International bullion weakness drags local gold rates lower as investor demand softens
KARACHI: Gold prices in Pakistan extended their downward trend on Tuesday, with the precious metal falling by Rs4,100 per tola, bringing the cumulative decline over the past two trading sessions to Rs6,400 per tola amid continued weakness in international bullion markets.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold settled at Rs424,836 per tola, compared with Rs428,936 in the previous trading session.
The latest decline follows a Rs2,300 drop recorded on Monday, reflecting sustained pressure on gold prices both domestically and internationally.
The price of 24-karat gold per 10 grams also decreased by Rs3,515 to Rs364,228, down from Rs367,743 a day earlier.
International Gold Prices Extend Losses
In the international market, gold prices fell by $41 per ounce to around $4,024, continuing a recent decline as investors shifted funds away from traditional safe-haven assets.
Market analysts attributed the weakness to improving risk appetite among investors, who have increasingly moved towards equities and other higher-yielding assets amid easing geopolitical concerns and expectations of stable economic conditions.
The decline in global bullion prices was mirrored in Pakistan’s domestic market, where local gold rates closely track international price movements and exchange rate fluctuations.
Two-Day Loss Reaches Rs6,400 Per Tola
With Tuesday’s decline, local gold prices have fallen by a total of Rs6,400 per tola over the last two trading sessions.
Bullion traders said the recent correction reflects changing investor sentiment in international markets, where demand for defensive assets has softened in response to improving market confidence.
The decline has provided some relief to potential buyers after gold prices had remained near record highs in recent weeks.
Market Outlook
Analysts expect gold prices to remain sensitive to developments in global financial markets, monetary policy expectations and geopolitical events.
Any renewed uncertainty surrounding inflation, interest rates or international conflicts could revive demand for gold and provide support to prices.
However, if investor confidence continues to improve and capital flows remain directed towards riskier assets, bullion markets may remain under pressure in the near term.
For now, both local and international gold markets continue to face downward momentum, with weaker investor demand weighing on prices.