Gold prices in Pakistan recorded a sharp decline as international bullion markets continued to experience downward pressure, leading to a significant drop in local rates.
According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola decreased by Rs14,900 in a single day. Following the reduction, the new rate of one tola of gold settled at Rs438,036.
Likewise, the price of 10 grams of gold also witnessed a notable decline. The rate fell by Rs13,410, bringing the price of 10 grams down to Rs374,205 in the local market.
The decrease in domestic gold prices reflects the broader trend seen in global bullion markets, where prices have remained under pressure in recent trading sessions. Reports from international markets showed that spot gold declined by 0.8 percent, reaching $4,174.50 per ounce. Meanwhile, US gold futures also moved lower, registering a decline of 1.2 percent.
Market experts believe that the recent weakness in gold prices is largely linked to the strengthening of the US dollar. A stronger dollar often makes gold more expensive for buyers using other currencies, which can reduce demand and place downward pressure on prices.
Analysts also pointed to the US Federal Reserve’s continued commitment to maintaining a tight monetary policy. Higher interest rates generally make interest-bearing investments more attractive compared to non-yielding assets such as gold, causing some investors to shift their funds away from precious metals.
Financial experts have cautioned that gold could face additional losses if current economic conditions remain unchanged. Some analysts suggest that international gold prices may fall below the $4,000-per-ounce mark if pressure from monetary policy and currency strength continues.
Looking ahead, experts believe future movements in gold prices will largely depend on global economic and political developments. Upcoming US inflation figures, along with changes in geopolitical tensions, are expected to play a key role in shaping investor confidence and determining the direction of the gold market in the coming weeks.
Also Read: Gold Prices Drop Sharply Following Global Decline
