Gold prices in Pakistan witnessed a notable decrease on Tuesday following a substantial reduction in rates in the international market. According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of gold plummeted by Rs7,800 per tola and Rs6,686 per 10 grams, settling at Rs240,900 and Rs206,533, respectively.
Gold prices had been on an upward trend since last week, both locally and internationally, as investors sought refuge in the precious metal amidst escalating geopolitical tensions. The commodity reached an all-time high of Rs252,200 per tola on Saturday, April 20, 2024.
In the international market, gold prices dropped by $72 per ounce, reaching a nearly two-week low of $2,309. This decline was attributed to easing concerns over an escalation in the Middle East crisis, along with profit-taking activities. Additionally, investors awaited key data for fresh clues regarding the US interest rate trajectory. Gold had peaked at a record high of $2,431.29 on April 12 in the international market.
Tim Waterer, chief market analyst at KCM Trade, commented on the situation, stating, “Gold has been the recipient of different types of buying flows in recent months, and now one of those flows has slightly dried up with safe-haven demand receding. Investors are seeing this as an opportunity to lock in some profits after gold’s recent (strong) run.”
Meanwhile, silver prices in the local market also experienced a decline of Rs100 per tola and Rs85.74 per 10 grams, settling at Rs2,650 and Rs2,271.94, respectively.
It’s worth noting that Pakistan relies on imports to meet its gold demand as it does not produce the precious metal domestically. Therefore, gold prices in Pakistan are determined based on world market prices, the rupee-dollar exchange rate, and domestic demand and supply dynamics. The latest price adjustments were made by considering the trade prices among buyers and sellers in the local markets.
Given the ongoing political and economic uncertainty and high inflation, gold prices in Pakistan have been volatile recently. Consequently, individuals often turn to gold as a safe investment and hedge during such times of instability.
