Karachi, July 31, 2023 – Pakistan gold witnessed a sharp decline on Monday, July 31, 2023, as the precious metal’s value plummeted in the international market. The drastic fall has raised concerns among investors and market experts.
The price of 24 karat gold per tola in the local market saw a substantial drop, falling by Rs 2,500 to close at Rs 222,200. Similarly, the price of 24 karat gold per 10 grams experienced a significant decline of Rs 2,143, concluding the day at Rs 190,501.
READ MORE: Gold Rates in Pakistan Surge by Rs 2,600 Ahead of Muharram Holidays
Market analysts attributed the sudden decline in gold prices to the recent turmoil in the international market. The yellow metal recorded a substantial decrease of $16, finishing at $1,959 per ounce on the global stage. Geopolitical tensions, economic uncertainties, and fluctuating market conditions have all played a role in the decline of gold prices worldwide.
Interestingly, the local gold prices seemed to neglect the impact of the depreciation of the Pakistani Rupee (PKR) against the US Dollar. The PKR weakened by 19 paisas against the dollar, reaching an exchange rate of PKR 286.64 in the interbank foreign exchange market. Typically, a weaker local currency would push gold prices higher in Pakistan, but this was not the case on this particular day.
READ MORE: Gold Rates Experience Sharp Fall as PKR Strengthens Against Dollar
Market experts highlighted that the price movements of gold in Pakistan have been closely aligned with international gold prices and exchange rate fluctuations. However, the anomaly observed on July 31 has raised questions about the complex interplay of various factors influencing the local gold market.
Investors and traders are keeping a keen eye on the gold market, and many are cautiously evaluating the situation before making any investment decisions. The recent decline has both short-term and long-term implications for the economy and investment landscape of Pakistan.
READ MORE: Gold Rates in Pakistan Decline by Rs800 on July 25, 2023 Amidst International Market Fall
As the world economy continues to grapple with uncertainties and fluctuations, the future of gold prices in Pakistan remains uncertain. Investors are advised to closely monitor global economic trends and geopolitical developments to make informed decisions.
Financial experts anticipate that the gold market may stabilize in the coming days, but it will largely depend on the resolution of the international issues that are currently affecting the market sentiment.
READ MORE: Gold Rates Increase Sharply on PKR Depreciation and International Market Rise
As the situation unfolds, the government, financial institutions, and market regulators may consider measures to stabilize the local gold market and provide support to investors. Until then, stakeholders remain vigilant about the ever-changing dynamics of the precious metal market.
