Karachi, October 9, 2024 – Gold prices in Pakistan have dropped sharply, closing at Rs 271,700 per tola on Wednesday, reflecting a significant decline of Rs 3,000 from the previous day’s rate of Rs 274,700. The drop comes amid turbulence in global markets, which has had a cascading effect on local bullion prices.
This sharp fall in gold prices marks a volatile period for the precious metal in Pakistan. Just weeks ago, on September 26, 2024, gold reached an all-time high of Rs 277,000 per tola, a peak fueled by economic uncertainties and fluctuations in international demand. However, the market has been witnessing erratic movements since then, keeping both investors and traders on edge.
In tandem with the drop in per tola prices, the rate for 24-karat gold per 10 grams also fell by Rs 2,572, landing at Rs 232,939 from Tuesday’s closing price of Rs 235,511. This consistent decrease signals a broader trend that is impacting both small and large investors who have sought refuge in gold amidst a backdrop of fluctuating currency values and inflationary pressures.
Bullion market analysts attribute the steep decline in local prices to the significant plunge in global markets. International gold prices dropped by $30 per ounce, closing at $2,617 on Wednesday from $2,647 the day before. The global decline was primarily driven by a strengthening U.S. dollar and rising treasury yields, which have siphoned investor interest away from safe-haven assets like gold.
“Gold prices are highly sensitive to international trends,” remarked a senior bullion trader in Karachi. “The recent dip in global rates, alongside improving U.S. economic indicators, has created a downward pressure on local prices. However, market volatility remains, and further fluctuations are expected in the near term.”
The fall in gold prices has impacted local traders, many of whom had been expecting prices to stabilize at higher levels. Some market observers believe that with ongoing geopolitical tensions and potential central bank interventions in major economies, the gold market could see a rebound in the coming weeks. Nonetheless, the immediate outlook remains cautious, with investors keeping a close eye on global developments.
For now, gold in Pakistan continues its downward trajectory, leaving both seasoned investors and retail buyers uncertain about future movements in the market.