Gold prices in Pakistan saw an unprecedented decline on Tuesday, marking the largest single-day drop in the nation’s history. The sharp fall followed a significant dip in global gold rates, as international markets witnessed growing pressure from stronger currencies and cautious investor behavior.
According to market data, the price of 24-carat gold plummeted by Rs14,000 per tola, bringing it down to Rs416,362. This steep fall reflects the ongoing volatility in both domestic and international markets.
Domestic Gold Prices Fall Drastically
In the local bullion market, 10 grams of 24-carat gold dropped by Rs12,003, settling at Rs356,963. Similarly, 10 grams of 22-carat gold were priced at Rs327,227 after a reduction of Rs11,004 compared to the previous session.
Traders attribute the decline to weaker global demand, fluctuating exchange rates, and pressure from international gold movements. The price drop has taken many investors by surprise, especially those who had anticipated stability after last week’s minor gains.
Global Gold Rates Decline to $3,940 per Ounce
On the global front, gold prices witnessed a sharp correction of $140 per ounce, pushing the international rate down to $3,940. The fall continues a downward trend seen over the past few weeks as the US dollar and other major currencies strengthened.
Market analysts believe that the rise in interest rates across key economies has reduced investor appetite for precious metals. As returns on fixed-income assets improve, investors are shifting away from gold as a safe haven.
The drop in international gold rates has directly influenced local markets, where prices often mirror global trends due to currency parity and import dependencies.
Silver Prices Also See Notable Decline
The decline was not limited to gold. Silver prices also experienced a sharp fall. The price of 24-carat silver per tola fell by Rs173 to Rs4,924. Meanwhile, 10 grams of silver dropped by Rs148, bringing the rate to Rs4,221.
Analysts note that silver’s performance often aligns with industrial demand and global market sentiment. With economic uncertainties rising, both precious metals are facing reduced investor support.
Market Factors Driving the Decline
Experts suggest that Pakistan’s gold market remains sensitive to fluctuations in the interbank exchange rate and international price trends. Any changes in the dollar’s value directly impact local gold rates due to the import-based nature of the precious metals market.
Additionally, traders are closely monitoring upcoming central bank announcements and global financial indicators that could influence demand for safe-haven assets.
The strengthening of global currencies and improved economic confidence have further contributed to gold’s depreciation. As a result, buyers are expected to adopt a wait-and-see approach before making major investment decisions in the coming days.
Investors Urged to Watch Market Movements
Financial experts advise investors to keep a close eye on currency movements and international gold prices. The market could remain volatile if global interest rates continue to rise or if currency values fluctuate further.
While the current dip offers potential buying opportunities, analysts caution that short-term rebounds are unlikely unless global markets stabilize.
For now, Pakistan’s gold market continues to reflect broader economic conditions, with prices heavily influenced by international developments and currency fluctuations.
