Karachi, July 23, 2024 – The gold prices on Tuesday slipped by Rs 500 in domestic markets of Pakistan following a decline in the international markets.
The gold 24-karat per tola fell to Rs 250,500 from the previous day’s closing of Rs 251,000 in local markets of Pakistan.
Similarly, the gold 24-karat per 10 grams dropped by Rs 429 to end at Rs 214,763 from the last day’s closing of Rs 215,192 in the domestic markets.
Analysts attributed the fall in domestic prices of gold in Pakistan to a decrease in the international markets. The gold declined by $11 to end at $2,391 an ounce when compared with the previous day’s closing of $2,402 in the international markets.
The global gold market has been experiencing fluctuations due to various economic factors. The recent decline is primarily driven by the strengthening of the US dollar and a slight increase in US Treasury yields. Investors have been shifting their focus towards other investment avenues, such as equities, in response to positive economic indicators from major economies.
In Pakistan, the impact of international gold prices is directly felt in the domestic market. The country, which imports a significant portion of its gold, has to adjust its prices according to the global trends. The recent slip in gold prices is reflective of this dependency.
Local jewelers in Karachi expressed mixed reactions to the price drop. Some saw it as an opportunity to attract more customers, while others were concerned about the reduced profit margins. “While a drop in prices might attract more buyers, it also means that our profit margins get slimmer,” said a local jeweler.
Despite the recent dip, gold remains a preferred investment in Pakistan, particularly in times of economic uncertainty. It is considered a safe haven and a hedge against inflation. The cultural significance of gold, especially in weddings and other major celebrations, continues to drive demand.
Economists suggest that the current trend might persist if the international market continues to react to the economic policies and data from major economies like the US and China. However, they also caution that gold prices are highly volatile and can change rapidly with shifts in global economic conditions.
As of now, market watchers are keeping a close eye on the international developments that could further influence the gold prices. The interplay between global economic policies, currency fluctuations, and investor sentiment will be crucial in determining the future trajectory of gold prices both internationally and domestically.
The Rs 500 decline in gold prices in Pakistan on July 23, 2024, mirrors the $11 drop in international markets. As the global economic landscape continues to evolve, the gold market remains unpredictable, making it essential for investors and consumers to stay informed about the latest trends and factors influencing the prices.