Gold prices recorded a steep decline in Pakistan on Friday, making the precious metal cheaper by thousands of rupees. The drop followed a significant downturn in international gold markets, reflecting changing global economic conditions.
Sharp Fall in Local Gold Rates
According to market data, the price of gold per tola fell by Rs21,400. As a result, the new rate settled at Rs507,762 per tola. This decline marked one of the sharpest single-day drops in recent weeks.
Similarly, the price of 10 grams of gold also declined noticeably. It dropped by Rs18,347, bringing the rate down to Rs435,324. Consequently, buyers witnessed temporary relief after weeks of elevated prices.
Meanwhile, jewellers reported cautious market activity. Many buyers delayed purchases, expecting further price adjustments in coming days.
International Gold Prices Also Decline
At the same time, gold prices in the international market moved sharply lower. The price per ounce dropped by $214, settling at $4,850. This global decline directly influenced domestic prices.
Moreover, analysts observed increased volatility across commodity markets. Gold reacted quickly to shifting economic indicators and currency movements.
As global prices weakened, local rates followed the trend without delay.
Factors Behind the Price Drop
Experts linked the downward trend to several global factors. Firstly, fluctuations in the US dollar reduced gold’s appeal as a safe-haven asset. Secondly, shifting investor sentiment affected demand across international markets.
In addition, global economic pressures played a key role. Concerns over interest rate policies and economic growth influenced commodity pricing.
Furthermore, investors moved capital toward alternative assets. This shift reduced short-term demand for gold.
Market Outlook Remains Uncertain
Despite the decline, market observers urged caution. Gold prices often remain sensitive to global economic developments. Therefore, sudden rebounds remain possible.
Local traders expect short-term volatility to continue. However, long-term trends will depend on currency movements and global financial stability.
For now, buyers are closely monitoring price movements. Sellers, meanwhile, are adjusting strategies to manage uncertainty.
