- Web Desk
- 3 Hours ago
Gold prices decline by Rs700
- Web Desk
- Oct 05, 2024
KARACHI: Gold price in Pakistan saw a significant decline, marking a departure from the recent upward trend.
The All Pakistan Gems and Jewellers Association reported a decrease of Rs700 per tola, bringing the price down to Rs275,500.
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Similarly, the cost of gold per 10 grams dropped by Rs600, now standing at Rs236,197.
The local price adjustment coincides with a downturn in the global gold market, where prices fell by $7 to $2,653 per ounce. This helped bring down the price of gold in Pakistan, as well.
The fluctuation in gold prices are influenced by a variety of factors, both domestic and international.
In the international markets, gold prices are primarily determined by supply and demand, with increase in gold prices often driven by economic uncertainty or geopolitical tensions.
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Gold is also viewed as a safe asset, hence during times of economic instability, buyers flock to gold. This drives up the precious metal’s prices.
Prices of gold also is heavily influenced by the strength of the US dollar. The precious metal is typically prices in dollars, so a stronger dollar makes the price of gold more expensive for owners in other currencies.
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Interest rate also play a huge role in determining gold prices. Lower interest rates decrease the opportunity cost of holding non-returning assets such as gold, making it more attractive to buyers.