Gold prices fall to five-month low in Pakistan

KARACHI: Gold prices fell for a fifth consecutive day in Pakistan on Saturday, dropping to a five-month low as rates in the local market declined alongside a fall in international prices.

According to the All Pakistan Sarafa Association, the price of gold fell by Rs2,500 per tola to Rs422,036.

The price of 10 grammes of gold also declined by Rs2,144 to Rs361,686.

In the international market, gold prices fell by $25 per ounce to $3,995, slipping below the $4,000 mark.

Silver prices also edged lower in Pakistan, with the price per tola falling by Rs7 to Rs5,858.

The latest decline followed a Rs7,000 drop in the price of gold per tola in the local market on Friday.

The consecutive declines have pushed domestic gold prices to their lowest level in five months, according to the figures provided by the association.

Factors influencing gold prices

Gold prices in international and domestic markets are influenced by several factors, including fluctuations in the US dollar, global economic uncertainty, geopolitical tensions and investor sentiment.

Investors often turn to gold as a safe-haven asset during periods of economic and political uncertainty, potentially driving prices higher as demand increases. Conversely, easing uncertainty can put downward pressure on prices.

In Pakistan, international gold prices and the exchange rate between the rupee and the US dollar are among the key factors determining rates in the local bullion market.