Karachi, September 9, 2024 – Gold prices in Pakistan witnessed a significant decline on Monday, with the per tola rate dropping by Rs 1,100. The fall in prices is attributed to a downturn in international markets, which had a ripple effect on local gold rates.
As per market data, the price of 24-karat gold per tola (11.66 grams) decreased to Rs 260,400, down from the previous day’s closing price of Rs 261,500 in Pakistan’s domestic markets. Similarly, the rate for 24-karat gold per 10 grams fell by Rs 743, ending the day at Rs 223,251, compared to the previous close of Rs 224,194.
Factors Behind the Decline
The significant drop in gold rates can be linked directly to the weakening trend in global markets. On the international front, the price of gold per ounce dropped by $7, closing at $2,490, down from the prior day’s closing of $2,497. Bullion market experts in Pakistan believe that this downturn in the international markets is the primary factor contributing to the decline in local gold rates.
Gold prices have been fluctuating in recent weeks, driven by several global economic factors, including the strength of the U.S. dollar, changes in interest rates, and shifting investor sentiment. With central banks globally adjusting monetary policies to tackle inflation, the market has seen investors becoming more cautious about gold as a safe-haven asset. This global uncertainty has contributed to downward pressure on gold prices both internationally and domestically.
Impact on Local Markets
The drop in gold prices comes at a time when Pakistani consumers and traders are navigating an already challenging economic environment. The country’s gold market, which typically sees significant activity during wedding seasons and festivals, may experience reduced demand due to the price volatility. However, the current decline may provide an opportunity for investors and buyers to purchase gold at lower rates.
Jewelry retailers and bullion traders in Pakistan are closely watching international developments to assess the future movement of gold prices. While the fall may bring short-term relief to those looking to buy gold, it also reflects broader uncertainties in the financial markets.
Outlook for Gold Prices
Market analysts predict that gold prices could remain volatile in the coming weeks, with the potential for further fluctuations depending on international economic conditions, geopolitical developments, and central bank policies. Despite the current dip, many experts believe that gold will continue to be a critical asset for investors seeking stability in uncertain times.
In summary, gold prices in Pakistan have dropped significantly, with the per tola rate falling by Rs 1,100, following a similar decline in international markets. Investors and consumers alike will be monitoring the situation closely as the global economic outlook continues to evolve.
