Karachi, November 14, 2024 – Gold prices in Pakistan experienced a sharp decline on Thursday, falling by Rs 5,500 per tola due to a notable drop in international prices. The 24-karat gold rate in Pakistan now stands at Rs 266,400 per tola, down from Wednesday’s closing price of Rs 271,900. This marks a significant correction in the local market after prices hit an all-time high of Rs 287,900 per tola on October 30.
The recent surge in gold prices in late October was primarily driven by escalating tensions in the Middle East, which fueled uncertainty in global markets and pushed investors towards safe-haven assets like gold. However, following the recent U.S. elections, international markets have shown signs of stability, prompting a decrease in gold prices worldwide.
The decline in the international gold price has mirrored Pakistan’s downward trend. On Thursday, the global gold rate fell by $55 per ounce, bringing it to $2,552 from the previous day’s close of $2,607. This reduction in international prices is attributed to improved investor confidence as global markets react positively to political developments and potential de-escalation in key conflict zones.
Similarly, the price for 10 grams of 24-karat gold in Pakistan dropped by Rs 4,716, landing at Rs 228,395 from the prior day’s price of Rs 233,111. This decline provides some relief to local buyers amid a period of persistently high gold prices that have put considerable strain on consumer purchasing power.
The steep rise in gold rates over the past month has been a challenge for the average Pakistani consumer, particularly during wedding season when demand traditionally peaks. The current drop offers a short-term reprieve for potential buyers, though analysts are cautious about long-term trends due to ongoing geopolitical uncertainties and the unpredictable nature of international commodity markets.
Gold remains a popular investment and hedge against inflation in Pakistan, as well as a vital component of local cultural and economic practices. The recent dip in prices, influenced by international factors, reflects the close linkage between Pakistan’s domestic gold rates and global market dynamics.
