KARACHI: The All Pakistan Sarafa Gems and Jewellers Association on Tuesday reported a sharp decline in domestic gold prices, tracking weakness in international markets and fluctuations in the interbank exchange rate.
According to the association, the price of 24-karat gold per tola fell by Rs.3,000 to Rs.488,462, while 10 grams of 24-karat gold dropped Rs.2,572 to Rs.418,777. The 22-karat variant stood at Rs.383,892 per 10 grams after a reduction of Rs.2,358. In contrast, silver rates remained unchanged, with 24-karat silver per tola steady at Rs.7,744 and 10 grams at Rs.6,639.
On the global front, international gold prices slipped $30 to $4,657 per ounce, reflecting investor caution amid expectations of tighter monetary policy in major economies. Analysts note that bullion markets have been under pressure as the US dollar strengthened and Treasury yields rose, dampening demand for the safe-haven metal.
Silver, however, held firm at $72.60 per ounce, supported by industrial demand and optimism around renewable energy investments.
Market watchers attribute the local decline to the interplay between international bullion trends and Pakistan’s interbank exchange rate, which directly influences the rupee-denominated valuation of precious metals. Traders said the volatility underscores the sensitivity of domestic prices to global cues, particularly as geopolitical tensions and shifting central bank policies continue to sway investor sentiment worldwide.
While gold’s retreat has raised concerns among investors seeking safe assets, some analysts suggest the correction could provide relief to the jewellery sector, where high prices have dampened consumer demand in recent months.
Globally, bullion remains a barometer of uncertainty, with markets closely watching signals from the US Federal Reserve and developments in energy and commodity markets.
