Karachi, February 3, 2024 – Gold rates in Pakistan witnessed a significant drop of Rs 1,700 per Tola on Saturday, mirroring a sharp decline in the international markets.
The local gold market experienced a dip in both 24-karat per Tola and per 10 grams, as investors grappled with the repercussions of the global downturn.
The 24-karat gold per Tola saw a decline from Rs 217,700 to Rs 216,000 in the local markets, reflecting the bearish sentiment. Similarly, the 24-karat gold per 10 grams dropped by Rs 1,458, settling at Rs 185,185 as compared to the previous day’s closing of Rs 186,643.
Market experts have attributed the fall in gold prices within Pakistan to the broader decline in the international markets. The precious metal’s global performance witnessed a $15 drop, reaching $2,059 per ounce, down from the previous day’s closing at $2,074.
The reasons behind the international slump in gold prices are multifaceted. Geopolitical factors, such as easing tensions, and positive economic indicators in major economies have led to a shift in investor sentiment away from safe-haven assets like gold. Additionally, the strengthening of the US dollar and concerns over rising interest rates have further contributed to the decline in gold prices globally.
In recent times, gold has been a popular choice for investors seeking a hedge against inflation and economic uncertainties. However, the current market dynamics are reshaping this narrative. With signs of economic recovery and the possibility of higher interest rates, investors are reallocating their portfolios, moving away from traditional safe-haven assets like gold.
The drop in gold rates in Pakistan may offer a unique buying opportunity for local investors, especially those looking to diversify their portfolios or capitalize on short-term fluctuations. The decline in prices could also be viewed as a positive development for jewelers and consumers, making gold more accessible for various purposes.
While the current trend suggests a decline, the gold market remains sensitive to global economic and geopolitical developments. Investors are advised to stay vigilant and monitor market trends closely to make informed decisions.
As the global economic landscape continues to evolve, the gold market in Pakistan and worldwide is likely to witness further fluctuations. Whether this downturn is a temporary correction or a sustained trend will depend on a range of factors, including economic data, geopolitical events, and central bank policies. Investors and market participants should stay informed and adapt their strategies accordingly in response to the dynamic nature of the gold market.
