Gold price falls in Pakistan

ISLAMABAD: Gold prices recorded a sharp decline in both local and international markets on Monday, with the price of a tola falling by Rs15,100 in Pakistan, according to the All Pakistan Sarafa and Gems’ Association.

The price of gold fell to Rs467,936 per tola, while the price of 10 grammes declined by Rs12,946 to Rs401,179.

Silver prices also fell, with the price of a tola dropping by Rs397 to Rs7,112.

In the international market, gold fell by $151 per ounce to $4,454, according to market data.

Gold prices had remained unchanged in Pakistan on Sunday, with no increase or decrease recorded in the local market.

What is driving gold prices?

Gold prices in Pakistan are closely linked to movements in the international bullion market, while fluctuations in the value of the US dollar, expectations surrounding interest rates and investor sentiment can also influence domestic prices.

Changes in international gold prices are generally reflected quickly in local bullion markets, including Pakistan.

Sarafa market dealers said that if international gold prices continue to decline, local prices could fall further. However, renewed economic or geopolitical uncertainty could increase demand for the precious metal as a safe-haven asset and push prices higher again.