Karachi, December 17, 2024 – Gold prices in Pakistan witnessed a significant drop on Tuesday, falling by Rs 2,100 per tola due to declining trends in the international market.
The price of 24-karat gold per tola closed at Rs 274,900, down from the previous day’s rate of Rs 277,000 in the local bullion market. This marks a considerable decrease from the all-time high of Rs 287,900, recorded on October 30, 2024. Similarly, the price of 24-karat gold per 10 grams fell by Rs 1,800 to settle at Rs 235,682, compared to the previous day’s closing price of Rs 237,482.
Experts in the bullion market attributed the decline in domestic gold prices to the falling trend in international gold markets. On the global front, gold prices slipped by $21, closing at $2,637 per ounce from the previous day’s rate of $2,658 per ounce. The downward trajectory in global prices was primarily influenced by reduced demand for safe-haven assets, as investors turned their focus toward the strengthening U.S. dollar and rising bond yields.
Analysts noted that the international market’s softening gold prices are a key determinant of the local market dynamics. With Pakistan heavily reliant on imports to meet its gold demand, fluctuations in global rates directly impact domestic prices. Additionally, exchange rate movements and import duties also play a role in shaping local gold prices.
Despite the decline, gold remains a preferred investment option in Pakistan, especially amid persistent economic challenges and inflationary pressures. Investors and traders often turn to gold as a hedge against currency depreciation and economic instability. However, the recent slump may prompt cautious buying in the short term as market participants monitor international trends and local economic conditions.
Looking ahead, market experts suggest that gold prices may continue to exhibit volatility, influenced by global economic developments, U.S. Federal Reserve policies, and geopolitical factors. For now, the substantial drop provides an opportunity for prospective buyers looking to capitalize on the lower prices in the domestic market.