Gold prices decline in Pakistan as global bullion market weakens

KARACHI: Gold prices in Pakistan fell on Tuesday, tracking weaker international bullion prices, with the price of one tola declining by Rs500, according to the jewellers’ association.

The All Pakistan Sarafa Gems and Jewellers’ Association (APSGJA) said the price of one tola of gold fell to Rs427,936 from Rs428,436 a day earlier.

The price of 10 grams of gold also declined by Rs428 to Rs366,886, the association said.

Domestic gold prices generally move in line with trends in the international market, where bullion prices are influenced by movements in the US dollar, expectations over interest rates, inflation concerns and investor demand for safe-haven assets.

Gold has experienced sharp price swings in recent weeks as investors reassess the outlook for global monetary policy and geopolitical risks.

APSGJA said that further declines in Pakistan’s gold prices would depend largely on international market trends.

The association added that continued weakness in global bullion prices could lead to additional reductions in local rates in the coming days, while renewed geopolitical or economic uncertainty could lift prices again.

Despite the latest decline, traders said that gold remains beyond the reach of many consumers due to its historically high price levels.

Buyers said that lower prices were welcome but expected demand for jewellery to recover only if prices eased further ahead of the upcoming wedding season.