Karachi, November 25, 2024 – Gold prices in Pakistan saw a sharp decline on Monday, plunging by Rs 4,300 per Tola, reflecting a similar downward trend in the international bullion market.
The rate for 24-karat gold dropped to Rs 278,400 per Tola, down from Saturday’s closing price of Rs 287,700 in local markets. This marks a significant correction from the all-time high of Rs 287,900 recorded on October 30, 2024. Since reaching that peak, gold prices have remained volatile in both domestic and international markets.
Similarly, the price of 24-karat gold per 10 grams fell by Rs 3,657, closing at Rs 238,683 compared to the previous rate of Rs 242,370 in Pakistan.
Experts in the bullion market have linked the sharp drop in domestic gold prices to movements in the international market. Global gold rates decreased significantly, with a $43 decline per ounce, bringing the price to $2,672 from the previous close of $2,715.
According to analysts, heightened geopolitical tensions in the Middle East and the aftermath of the US elections have created volatility in international markets. These factors have caused fluctuations in investor sentiment, leading to a broader correction in gold prices worldwide.
Gold prices in Pakistan typically follow trends in the global market, adjusted for exchange rates and local market dynamics. The latest drop comes after a period of record highs, driven earlier by economic uncertainty and geopolitical risks.
Domestic demand for gold, often linked to investment and wedding season purchases, has been impacted by the recent price volatility. Traders report a cautious approach among buyers, as they anticipate further corrections in the market.
Analysts suggest that gold prices may remain under pressure in the short term, depending on developments in the Middle East and shifts in US monetary policy following the elections. However, they also note that gold remains a safe-haven asset and could regain its upward momentum if global uncertainty intensifies.
The significant decline in both international and domestic gold rates serves as a reminder of the precious metal’s sensitivity to geopolitical and economic changes, offering both risks and opportunities for investors.
