Karachi, August 29, 2024 – The gold prices in Pakistan witnessed a significant decline on Thursday, dropping by Rs 2,200 per tola in the domestic market. This sharp decrease is primarily attributed to reduced demand, as reported by the Karachi Saraf Bazar.
The bullion market reopened today after a three-day closure due to Chehlum and a traders’ protest, which had halted trading activities. Following the reopening, the price of 24-karat gold per tola fell to Rs 261,500 from the previous record high of Rs 263,700 last Saturday. Similarly, the price of 24-karat gold per 10 grams also saw a decrease, declining by Rs 1,886 to settle at Rs 224,094, compared to its previous close of Rs 226,080.
Experts in the bullion market attributed this decline to a decrease in demand within the domestic market. The reduced buying interest among consumers has been a key factor in driving down gold prices. Traders and analysts suggested that the recent closure of the market might have contributed to this decline in demand, as buyers may have shifted their focus away from gold during the period of inactivity.
Despite the dip in local gold prices, the international market painted a different picture. Gold prices in global markets experienced a slight increase, with the metal’s value rising by $4 to reach $2,516 per ounce, up from the previous closing of $2,512 per ounce. The contrasting trends in the local and international markets highlight the unique dynamics influencing gold prices in Pakistan.
Bullion market experts believe that the local price movement is largely independent of international trends, often influenced more by domestic factors such as demand, currency fluctuations, and market sentiment. In this instance, the temporary market closure and subsequent reopening played a pivotal role in altering the price trajectory.
Additionally, the recent surge in international gold prices has been driven by geopolitical tensions and economic uncertainty, prompting investors to turn to gold as a safe-haven asset. However, this trend has not significantly impacted the domestic market in Pakistan, where demand appears to be weakening.
Looking ahead, market participants remain cautious about the future direction of gold prices in Pakistan. The reopening of the market and the resumption of trading activities are expected to stabilize prices in the short term, but the ongoing economic challenges and fluctuating demand will likely continue to influence the market.
As the gold market adjusts to these dynamics, traders and investors are closely monitoring both domestic and international developments. The interplay between local demand and global price movements will be key determinants in shaping the outlook for gold in Pakistan in the coming days.
