The price of 24 karat per tola gold dropped heavily by Rs9,000 and settled at Rs514,762 compared to Rs523,762 a day earlier, according to the All Pakistan Sarafa Gems and Jewellers Association.
The price of 10 grams of 24 karat gold also declined by Rs7,716 to Rs441,325 from Rs449,041. Meanwhile, 10 grams of 22 karat gold fell by Rs7,073 to Rs404,562 against Rs411,635 in the previous session.
Silver prices also moved downward. Per tola silver decreased by Rs150 to Rs8,014, while 10 grams silver fell by Rs129 to Rs6,870.
In the international market, gold first dropped by $90 to $4,920 from $5,010. Later reports showed an even sharper fall of $130 per ounce, bringing prices down from $5010 to $4879. Silver also slipped by $1.5 to $75.30.
Read more: Pakistan on track for IMF targets despite tax shortfall
“Gold prices fall $130 in global markets, triggering expectations of a significant drop in Pakistan.”
Analysts say tensions between United States and Iran are affecting investor confidence. Because of this uncertainty, global investors are shifting strategies.
Market participants are now waiting for the minutes of the Federal Open Market Committee FOMC meeting in the United States. Any signal about future monetary policy may cause fresh movement in gold prices.
Local dealers believe that if the global trend continues, the price of one tola gold in Pakistan may drop further by Rs12,000 to Rs13,000. Just recently, one tola was priced at Rs523,762.
Experts warn that ongoing global volatility may keep local gold rates unstable in the coming days.
Gold prices react quickly to global news. If global tensions increase, prices may rise again. If economic signals improve, gold could fall further.
