Karachi, July 8, 2024 – On Monday, gold rates in Pakistan fell by Rs 1,300, mirroring a decline in international markets. The price of 24-karat gold per tola dropped to Rs 245,100 from Saturday’s Rs 246,400 in local markets.
Similarly, the price of 24-karat gold per 10 grams declined by Rs 1,113, settling at Rs 210,134 from the previous closing of Rs 211,247 in domestic markets.
Analysts in the bullion market attributed the decrease in domestic gold prices to a corresponding fall in international markets. Gold prices globally registered a decline of $12, ending at $2,376 per ounce compared to the last closing of $2,388.
The drop in gold prices is seen as a reaction to various global economic factors. Recent strengthening of the US dollar, along with a rise in bond yields, has exerted downward pressure on gold prices internationally. Investors often flock to gold as a safe-haven asset during times of economic uncertainty, but a stronger dollar makes gold more expensive for holders of other currencies, leading to decreased demand.
Local market traders in Pakistan also noted the impact of international trends on domestic gold rates. With gold prices falling globally, the local market reacted swiftly to align with the new international rates. This trend highlights the interconnectedness of global and domestic bullion markets.
Despite the drop, gold remains a valuable asset for investors in Pakistan. Many still consider it a hedge against inflation and currency devaluation. The recent decline might even be seen as a buying opportunity for long-term investors looking to capitalize on lower prices.
Economic experts suggest that the future trajectory of gold prices will depend on several factors, including global economic conditions, monetary policies of major economies, and geopolitical developments. Any significant changes in these areas could influence gold prices in the coming weeks and months.
For now, the decline in gold prices has caught the attention of both investors and consumers in Pakistan. While some may take advantage of the lower rates to buy gold, others will keep a close watch on global trends to make informed investment decisions.
The Rs 1,300 drop in gold rates in Pakistan on Monday reflects a broader global trend influenced by economic factors such as a stronger US dollar and rising bond yields. As the markets continue to evolve, gold prices are likely to remain a focal point for investors seeking stability in uncertain times.