Gold prices in Pakistan recorded a sharp decline on Monday (today), providing some relief to buyers after recent fluctuations in the bullion market.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold fell by Rs12,800 per tola. Following the decline, the new price of one tola of gold stood at Rs438,136.
The price of 10 gram gold also recorded a major decrease. It became cheaper by Rs10,973, bringing its new price to Rs375,631.
Silver prices also moved lower. The price of one tola of silver dropped by Rs325 to settle at Rs6,578.
Previously, gold dropped by Rs2,100 per tola to Rs450,936, while 10 gram gold fell to Rs386,604.
Gold prices also fall in International market
The decline in Pakistan followed a fall in international gold prices.
According to the rates reported by the local jewellers association, gold in the international market dropped by $128 per ounce to $4,156 per ounce.
Global market data on Monday also showed strong downward pressure on gold. Spot gold was down more than 1 per cent during early trading as expectations of higher US interest rates affected demand for the precious metal.
Gold had been trading at considerably higher levels only a few days earlier. On September 25, the international rate was reported at $4,305 per ounce, while the Pakistani price had risen to Rs453,036 per tola.
Why do Gold prices keep fluctuating?
Gold prices in Pakistan are closely linked to movements in the international bullion market. Changes in the value of the Pakistani rupee against the US dollar can also affect local prices.
International gold prices can move due to several factors, including US interest-rate expectations, the strength of the dollar, inflation concerns and uncertainty in the global economy.
Geopolitical tensions can also influence demand for gold because investors often consider it a safe haven asset during periods of uncertainty.
Recent global trading has been affected by expectations surrounding US monetary policy. A stronger dollar and expectations that interest rates could remain high have placed pressure on gold prices.