Karachi, March 12, 2024 – After a nine-day rally that saw a remarkable 7.2 percent surge, gold prices in Pakistan softened on Tuesday, bringing relief to investors and consumers.
The precious metal’s 24-karat per Tola concluded the day down by Rs 100, closing at Rs 230,100, compared to the previous level of Rs 230,200 in the local markets. Similarly, the 24-karat gold per 10 grams saw a decline of Rs 86, settling at Rs 197,274 from the last closing of Rs 197,360 in the domestic markets.
The recent surge in gold prices had taken the 24-karat gold per tola from Rs 214,800 on February 28, 2024, to an impressive Rs 230,280 on March 9, 2024. This substantial gain of 7.2 percent within the span of these nine days attracted significant attention in the market. However, the prices remained unchanged on March 11, 2024.
Analysts in the bullion market are attributing the recent fall in domestic gold prices to a notable ease in the international markets. The global gold prices experienced a marginal dip of $1, settling at $2,197 per ounce, down from the previous closing of $2,198.
This decline is seen as a correction following the rapid and substantial increase in gold prices. The bullion market in Pakistan, like elsewhere, is often influenced by international trends and geopolitical factors. Investors closely monitor global economic conditions, inflation rates, and currency fluctuations, which can impact the demand and prices of precious metals.
The recent rally was fueled by a variety of factors, including concerns about inflation, geopolitical tensions, and a weaker domestic currency. Gold is traditionally considered a safe-haven asset during times of economic uncertainty, leading to increased demand and subsequently higher prices.
While the fall in prices may provide a temporary respite for buyers, the overall trend in the global economy will continue to play a crucial role in determining the trajectory of gold prices. Investors and market participants are advised to stay vigilant and adapt to the dynamic nature of the precious metals market.
The local bullion market is expected to closely monitor international developments, keeping an eye on economic indicators and geopolitical events that could impact gold prices in the coming days. As the market continues to adjust, it remains to be seen whether this softening of gold prices is a short-term correction or the beginning of a more sustained trend.
