Karachi, November 11, 2024 – Gold prices took a hit in Pakistan on Monday, slipping by Rs 1,300 per tola in response to a broader downward trend in the international bullion market.
The price of 24-karat gold dropped to Rs 277,500 per tola from last Friday’s closing rate of Rs 278,800 in the local markets, marking a significant shift amid recent economic developments.
Additionally, the price of 24-karat gold per 10 grams fell by Rs 1,115, closing at Rs 237,911 as compared to Rs 239,026 at the end of the previous trading session. This adjustment comes just weeks after domestic gold prices reached an all-time high of Rs 287,900 per tola on October 30, 2024.
According to analysts in the bullion market, the dip in Pakistan’s gold prices can be attributed to similar trends in international markets. The global market saw a decline in gold prices, with gold per ounce decreasing by $13, from $2,683 to $2,670, on Monday. This drop comes in the wake of the recent U.S. election results, where former President Donald Trump won his bid for a second term. His victory has sparked expectations of potential easing in Middle Eastern geopolitical tensions, which in turn has affected market demand for safe-haven assets like gold.
“Investors are speculating that with Trump’s return to the White House, we may see a more assertive U.S. stance on stabilizing the region,” said one Karachi-based bullion analyst. “This perceived improvement in the Middle East is causing investors to shift away from gold and toward other investment options, impacting prices here in Pakistan.”
For months, gold prices in Pakistan had been on a steady rise due to both international factors and the Pakistani rupee’s depreciation against the U.S. dollar. Increased demand for gold as a secure asset during times of global financial uncertainty had previously driven prices to record highs. However, the recent shift in the international political landscape, coupled with falling prices in the global gold market, has begun to temper local demand and lead to price adjustments.
Market experts caution that while today’s price drop is notable, it’s too early to predict a sustained decline. Gold prices remain sensitive to a range of economic indicators, including inflation rates, foreign exchange fluctuations, and shifts in global geopolitical dynamics. Investors are advised to monitor these trends closely as the new U.S. administration’s policies and international developments unfold.
