Karachi, December 6, 2024 – Gold rates in Pakistan witnessed a decline on Friday, dropping by Rs 1,000 per tola, influenced by falling trends in the international bullion markets.
The rate of 24-karat gold per tola in local markets decreased to Rs 274,700, compared to the previous day’s closing of Rs 275,700. Similarly, the rate for 24-karat gold per 10 grams fell by Rs 857, settling at Rs 235,511 from the previous day’s Rs 236,368. This marks a significant retreat from the record high of Rs 287,900 per tola, which was reached on October 30, 2024.
Experts in the bullion market attributed the dip in local gold rates to a decline in international gold prices. Globally, gold prices dropped by $10 per ounce, closing at $2,635 compared to the previous rate of $2,645. The international decline has a direct impact on the domestic market, as Pakistan’s gold rates are closely tied to global trends.
The fluctuation in international gold prices is influenced by several factors, including changes in the value of the US dollar, interest rate policies by major central banks, and geopolitical uncertainties. Recently, an uptick in US bond yields and a stronger dollar have exerted pressure on gold, which traditionally thrives as a safe-haven asset in times of economic instability.
Domestic factors also play a role in determining gold rates in Pakistan. The local bullion market is affected by currency exchange rates, particularly the strength of the Pakistani rupee against the US dollar. Additionally, seasonal demand and shifts in purchasing power influence price movements.
Despite the current downturn, gold remains a popular investment option in Pakistan, particularly during times of economic uncertainty. Market participants anticipate that future changes in international markets, coupled with domestic economic adjustments, will continue to drive fluctuations in gold rates.
While the short-term outlook appears bearish, the long-term demand for gold as a hedge against inflation and currency depreciation ensures its continued significance in investment portfolios.