Karachi, November 7, 2024 – In a striking development for precious metals, gold prices in Pakistan plunged by Rs 5,400 per tola on Thursday, reaching Rs 276,800. This sharp drop follows a significant downturn in international markets, where global gold prices also took a substantial hit due to evolving geopolitical and economic dynamics.
In local markets, the price of 24-karat gold per tola, which previously stood at Rs 282,200, ended Thursday at Rs 276,800, a fall that underscores growing volatility in precious metal prices. This latest downturn has contributed to a cumulative decrease of Rs 11,100 from gold’s peak price of Rs 287,900, which was recorded on October 30, 2024. The downward trajectory also affected the 24-karat per 10-gram rate, which sank to Rs 237,311, down from the prior day’s Rs 241,941.
The precipitous drop in gold prices in Pakistan is largely attributed to turmoil in the international market, where the price per ounce of gold tumbled by $65, landing at $2,662 from its previous close of $2,727. Bullion experts indicate that global factors, including the prospect of reduced geopolitical tensions in the Middle East, have exerted considerable downward pressure on gold. Following the victory of Donald Trump in the recent U.S. presidential election, there are expectations that Middle East tensions may ease, as Trump has advocated for a more diplomatic approach to conflict resolution in the region.
The international bullion market is reacting to a blend of political and economic variables that have fostered uncertainty, reducing the appeal of gold as a haven asset. Investors are closely monitoring developments, with some speculating that Trump’s return to office may herald policy shifts that could ease international trade tensions and stabilize commodity prices. This scenario has led to a pivot away from safe-haven assets, such as gold, and into equities and other growth-oriented investments.
Market analysts further highlight that rising interest rates and a strengthening U.S. dollar are creating additional downward pressure on gold prices globally. As the Federal Reserve maintains a restrictive stance on monetary policy, the dollar continues to gain traction, diminishing the attractiveness of dollar-denominated assets like gold for international buyers. The interplay of these factors has led to a contraction in demand, triggering a price correction.
