Gold prices in Pakistan experienced a significant decline on Monday, marking the second consecutive session of downward movement and aligning with the drop observed in the global market for the precious metal.
According to data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per tola gold rate in Pakistan (24 carats) decreased by Rs600, settling at Rs226,900. Similarly, the price of 10 grams of gold in Pakistan fell by Rs515, reaching Rs194,530.
Internationally, gold prices witnessed a $20 per ounce decrease, settling at $2,580. This decline came as the precious metal faced pressure following a robust US inflation report, which dampened expectations of an imminent interest rate cut by the Federal Reserve.
In an unexpected turn, silver prices also experienced a reduction, with per tola silver decreasing by Rs20 to settle at Rs2,580, and the price per 10 grams declining by Rs17.15 to settle at Rs2,211.93.
It’s worth noting that the gold price in Pakistan is determined by the association, which establishes gold prices for local markets six days a week, from Monday to Saturday.
Pakistan’s gold market is relatively small on the global scale, relying on imports to meet demand as the country does not produce gold domestically. Consequently, the gold rate in Pakistan is influenced by global market prices, the rupee-dollar exchange rate, and domestic demand and supply dynamics. The latest local prices are determined based on transactions between buyers and sellers.
Recent fluctuations in gold prices in Pakistan can be attributed to ongoing political and economic uncertainty, coupled with high inflation rates. In such uncertain times, gold is often sought after as a secure investment and hedge against economic instability.
Local dealers observe an increase in demand for gold in Pakistan, driven by the resurgence of inflation both domestically and globally. Investors are once again turning their attention to the yellow metal, considering safer commodities attractive during times of economic uncertainty.
Moreover, the upcoming wedding season following Ramadan has contributed to a rise in gold demand, with consumers taking advantage of the retreat in domestic prices.
