KARACHI, May 22, 2024 – On Wednesday, Pakistan experienced a significant drop in gold prices, with the rate decreasing by Rs 300 per tola. This decline mirrors a similar trend in the international markets, influencing local bullion rates.
The price of 24-karat gold per tola in Pakistan fell to Rs 248,200 from the previous day’s closing of Rs 248,500 in local markets. Similarly, the price of 24-karat gold per 10 grams decreased by Rs 236, bringing it down to Rs 212,731 from the previous day’s closing of Rs 213,048.
Analysts at the bullion market attributed the drop in domestic gold prices directly to the fall in international markets. Globally, gold prices dropped by $3, settling at $2,415 per ounce compared to the previous day’s closing of $2,418 per ounce.
“The decrease in international gold prices has a direct impact on our local market rates. With global prices dipping, we see a corresponding decline in domestic prices as well,” explained an analyst from the Karachi bullion market.
The international market’s fluctuation is influenced by various factors, including changes in investor sentiment, currency strength, and geopolitical developments. Currently, the slight drop in gold prices can be linked to a stronger US dollar and a mild easing of concerns over inflation, prompting investors to adjust their portfolios.
Local traders also highlighted that the demand for gold in Pakistan has been relatively stable, but the prices are largely driven by international trends. “While domestic demand plays a role, our market is highly sensitive to global price movements,” said a local jeweler.
The decline in gold prices comes at a time when the precious metal had been witnessing a bullish trend due to economic uncertainties and inflation fears. Gold is often seen as a safe-haven investment during times of economic instability, and its prices tend to fluctuate based on global economic conditions and investor behavior.
In Pakistan, gold remains a popular investment and a cultural staple, especially during the wedding season when demand typically spikes. However, the current drop might encourage more buyers to enter the market, potentially stabilizing or even increasing demand in the coming days.
As investors and consumers closely monitor these price changes, the local market anticipates further fluctuations based on upcoming international economic data and geopolitical events. For now, the Rs 300 drop provides a brief respite for buyers looking to invest in gold.
The local bullion market will continue to track global trends closely, with both traders and buyers keenly observing how international prices will shape the future of gold rates in Pakistan.
