Gold prices in Pakistan drop by over Rs10,000 per tola
KARACHI: In a surprising development, gold prices in Pakistan dropped sharply on Monday, with a significant decline of Rs10,400 per tola.
The decline in the gold prices was quite unexpected as the market was gaining confidence in the wake of the ceasefire agreement between India and Pakistan.
Pakistan Stock Exchange rebounded exponentially with KSE-100 index soared by over 10,000 points in early trade on the first trading day of the week.
The surge in the stocks showed investors gained confidence on the back of easing regional tensions and fresh financial inflows from the International Monetary Fund (IMF).
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According to the All Pakistan Gems and Jewellers Association, the price of 24-karat gold fell to Rs340,500 per tola after the steep decline. Similarly, 10 grams of 24-karat gold dropped by Rs8,917, now selling at Rs291,923.
The price of 10 grams of 22-karat gold also registered a fall of Rs8,087, bringing it down to Rs267,693.
Meanwhile, silver rates also dipped, with the price of one tola silver falling by Rs17 to Rs3,400. Ten grams of silver dropped by Rs15 to settle at Rs2,914.
On the international front, gold prices slid by $104 per ounce, bringing the global rate down to $3,221 an ounce, the association reported.
On the stocks front, the benchmark KSE-100 Index opened at 117,104.11 points, up 9,929.48 points, or 9.26 percent, prompting an hour-long trading suspension because limits had been reached.
“Today’s sharp surge in the stock market stems from a powerful convergence of bullish triggers that have swiftly turned investor sentiment from fear to opportunity,” Sana Tawfiq, head of research at Arif Habib Limited, Pakistan’s largest securities brokerage, told AFP.
The jump also comes on the back of the International Monetary Fund (IMF) on Friday approving a Pakistan loan-programme review, unlocking around $1 billion in much-needed funds and greenlighting a new $1.4 billion bailout despite India’s objections.
“We are very pleased today that the market has performed extremely well,” Ahmed Chinoy, director of the Pakistan Stock Exchange Limited, told AFP, while celebrating by cutting a cake with brokers.
“This positive shift is reinforced by the IMF’s dual approvals, providing both critical funding and international validation of Pakistan’s reform path,” Tawfiq added.
