Karachi, June 24, 2023: The gold rate in Pakistan experienced a significant decline on Saturday as demand weakened in anticipation of the upcoming Eid holidays.
The drop in prices affected both the 24 karat per tola and 24 karat per 10 grams categories.
According to market reports, the gold rate for 24 karat per tola plummeted by Rs2,500 to reach Rs214,500 in the local market. Similarly, the rate for 24 karat per 10 grams witnessed a reduction of Rs2,143, closing at Rs186,043.
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Financial analysts attribute the decline in gold prices to the lower demand prevailing in the local markets ahead of the Eid holidays. The Pakistani government has announced a series of holidays for Eid, starting from June 27 to June 29. Additionally, banks will remain closed until July 03, 2023, due to the combination of Eid holidays and scheduled bank holidays.
However, selected bank branches that usually operate on Saturdays will remain open on July 01, 2023. In light of the holidays, the State Bank of Pakistan (SBP) has made special arrangements to ensure the collection of duty and taxes during this period.
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In contrast to the local market, the international gold rate recorded a marginal increase of $1, concluding at $1,920 per ounce. This minor rise in global prices has not been significant enough to counter the drop witnessed in the Pakistani market.
Gold has historically been considered a safe haven investment, often sought after during uncertain times. However, the decline in demand for gold in Pakistan can be attributed to the approaching Eid festivities, where consumers tend to allocate their funds towards other expenses and celebrations.
READ MORE: Gold Rate Falls in Pakistan Amid PKR Appreciation, International Market Decline
As the Eid holidays commence, market observers will closely monitor the fluctuations in gold prices and anticipate how they might be influenced by post-holiday trends and renewed demand in the coming weeks.
It is important to note that gold rates can fluctuate rapidly due to various factors, including global market trends, economic indicators, and geopolitical events. Therefore, investors and consumers are advised to stay informed and consult with financial experts before making any significant investment decisions.
