Gold prices in Pakistan recorded a sharp decline on Wednesday, mirroring a downturn in the international market. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the per tola price of gold fell by Rs5,200, settling at Rs419,636. Similarly, the price of 10-gram gold decreased by Rs4,458 to reach Rs359,770.
International Market Trends
The drop in domestic prices followed a slump in global rates. Internationally, gold declined by $52 per ounce, reaching $3,972 per ounce (with a premium of $20). The continuous decline in global prices has influenced local markets, as Pakistan imports most of its gold.
Previous Day's Decline
On Tuesday, gold had already fallen by Rs4,100 per tola, closing at Rs424,836. Wednesday's drop of Rs5,200 marks a steeper decline, indicating sustained bearish sentiment in the precious metals market.
Silver Prices Also Fall
In addition to gold, silver prices also witnessed a decrease. The per tola price of silver dropped by Rs107, bringing it to Rs6,242. This decline aligns with the overall weakness in precious metals globally.
Market Outlook
Analysts attribute the fall in gold prices to a stronger US dollar and expectations of higher interest rates, which reduce the appeal of non-yielding assets like gold. The APGJSA noted that local demand remains subdued, and further declines may occur if international rates continue to slide.
