Karachi, September 28, 2024 – Gold prices in Pakistan continued their downward trajectory on Saturday, with rates falling to Rs 276,000 per tola as a result of weakening demand in the international markets.
The price of 24-karat gold per tola decreased by Rs 700 from the previous day’s close of Rs 276,700. Just two days earlier, on September 26, 2024, the price had reached an all-time high of Rs 277,000 in the local markets.
Similarly, the price of 24-karat gold per 10 grams also saw a decline, dropping by Rs 601 to settle at Rs 236,625, compared to the previous day’s rate of Rs 237,226. The consistent drop in prices reflects both local market conditions and broader trends in the global bullion market.
Bullion market analysts and traders in Pakistan linked the decrease in local gold prices to the international market downturn. Gold in the global markets witnessed a dip of $6 per ounce, sliding from $2,663 to $2,657 per ounce. While the price drop appears marginal, it has a cascading effect on local markets, particularly in countries like Pakistan, where gold demand is closely tied to international price fluctuations.
Experts in the industry indicated that the recent corrections in gold prices are primarily driven by shifting global economic indicators. A stronger US dollar, combined with expectations of steady interest rates by major central banks, has dampened investor demand for the precious metal. Traditionally viewed as a hedge against inflation and economic instability, gold prices tend to fluctuate based on the outlook for global monetary policy and currency strength.
In Pakistan, gold remains a highly sought-after asset, both as an investment and as a traditional element of weddings and cultural ceremonies. The recent surge to record highs of Rs 277,000 per tola was driven by a mix of local demand and a rally in global markets. However, the current price drop offers a momentary reprieve for buyers who have been deterred by the soaring rates.
Despite the recent decline, bullion traders remain cautious, as the international market is prone to volatility due to geopolitical tensions, inflation fears, and fluctuating economic forecasts. Local jewelers expect that gold prices may stabilize in the near future but continue to warn buyers of potential fluctuations driven by external factors.
The drop in gold prices offers a short-term opportunity for those looking to purchase the metal, but it also underscores the delicate balance between global market trends and local pricing dynamics in Pakistan.
