Gold prices in Pakistan have experienced a sharp decline, with the price of one tola dropping by Rs35,500, according to the All Pakistan Jewelers Association. The new rate for a single tola of gold now stands at Rs537,362, while the price for 10 grams of gold has fallen by Rs30,435, bringing it to Rs460,701.
The decline in domestic gold prices mirrors trends in the global market, where the price of gold per ounce has dropped by $335, settling at $5,150. Silver has also seen a similar decrease, with one tola now costing Rs11,069, down by Rs1,106. Market analysts attribute the sharp fall primarily to the strengthening of the US dollar in international markets and increased profit-taking by investors.
Historically, gold has been considered a safe-haven asset, attracting buyers during periods of economic uncertainty, inflation, or political instability. However, the current drop reflects reduced demand as investors shift their focus to other investment opportunities or liquidate holdings to secure profits. The decline demonstrates how international economic factors, particularly currency fluctuations, can significantly impact local gold prices.
It is also noteworthy that Pakistan revised its gold pricing method last year, setting domestic rates $20 higher than international market levels. This adjustment aimed to better align local gold prices with global trends while accounting for domestic market conditions, ensuring transparency and stability in pricing for consumers and investors.
Experts advise buyers and investors to remain cautious, monitor market developments closely, and consider both international trends and local pricing adjustments before making gold-related investment decisions. The current volatility in gold prices highlights the ongoing sensitivity of the market to global economic movements and investor sentiment.
Overall, while gold continues to hold its traditional value as a secure asset, recent price movements indicate a period of correction following months of strong gains.
Globally, Gold and Silver Prices Drop Sharply, Markets Turn Volatile
