Gold price declines in Pakistan

KARACHI: The price of gold in Pakistan has witnessed a significant decline on the second day of the business week, following the trend of the international market.

According to the Sindh Sarafa Bazaar Association, the price of gold per tola decreased by Rs4,500 to Rs2,4,500 on Tuesday. Similarly, the price of 10 grams of gold decreased by Rs3,858 to Rs1,75,326.

The decline in the domestic gold price is attributed to the fall in the global gold price, which dropped by $24 to $1,794 per ounce on Monday.

The global gold price is influenced by various factors, such as the US dollar exchange rate, inflation expectations, geopolitical tensions, and demand and supply dynamics.

According to some analysts, the global gold price may face further downward pressure due to the strengthening of the US dollar and the easing of inflation fears. However, some experts also believe that gold may regain its appeal as a safe-haven asset amid the uncertainty caused by the coronavirus pandemic and its variants.

The gold price in Pakistan has been fluctuating according to the international market trends and the local currency value. The gold price in Pakistan reached its highest level of Rs2,29,000 per tola in June 2023, when the global gold price was above $1,900 per ounce. However, since then, the gold price in Pakistan has declined by more than Rs20,000 per tola.

Gold is considered as a valuable asset and a hedge against inflation and currency devaluation in Pakistan. Many people invest in gold as a form of savings and security. Gold is also used for making jewellery and ornaments for various occasions and festivals.