Karachi, May 21, 2024 – Gold prices in Pakistan have seen a significant decline, dropping to Rs 248,500 per tola on Tuesday, influenced by fluctuations in the international market.
The 24-karat gold price fell by Rs 1,900 from the previous day’s closing price of Rs 250,400 in the domestic market.
This recent drop follows a period of volatility in gold prices. On April 20, 2024, gold per tola hit an all-time high of Rs 252,200, but since then, prices have been unstable. Similarly, the price of 24-karat gold per 10 grams decreased by Rs 1,630, settling at Rs 213,048 from the prior day’s closing of Rs 214,678 in local markets.
Market analysts attribute this drop in domestic gold prices to trends in the international markets. On the global stage, gold prices recorded a decline of $21, ending at $2,418 an ounce, down from the previous day’s closing of $2,439 an ounce.
“The fall in domestic gold prices is primarily due to the downward trend in the international market,” said a bullion market analyst. “Global economic factors, including interest rate hikes and changes in currency valuations, have contributed to this decline.”
Gold prices have historically been a reliable indicator of economic sentiment. During times of uncertainty, investors often flock to gold as a safe-haven asset. However, recent trends suggest a shift, with some investors moving towards other assets in anticipation of better returns.
In the context of Pakistan, the fluctuating gold prices have significant implications for various sectors, especially for those involved in the jewelry industry. Jewelers in Karachi expressed concern over the continuous price changes, which impact both sales and purchasing decisions.
“Frequent fluctuations in gold prices make it challenging for us to manage inventory and pricing,” said Ahmed Shah, a Karachi-based jeweler. “Customers are also hesitant to buy when prices are this volatile, which affects our business.”
As the global economy navigates through various challenges, including inflation and geopolitical tensions, gold prices are likely to remain unstable. Analysts suggest that investors should stay informed about global market trends and be cautious in their investment strategies.
As of now, all eyes are on the international markets to gauge the future trajectory of gold prices, with the hope that stability will soon return to this traditionally steady asset.