Gold prices in Pakistan witnessed a decline on Thursday, mirroring a downward trend in international markets. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola decreased by Rs1,500 to settle at Rs170,000. Similarly, the price of 10 grams of gold fell by Rs1,286 to Rs145,757.
International Gold Rates
On the global front, gold prices slipped as the US dollar strengthened. Spot gold was down 0.3% at $1,650.20 per ounce, while US gold futures also edged lower. The decline in international rates directly impacted the domestic market, leading to reduced prices for consumers.
Silver Prices Remain Stable
In contrast, silver prices in Pakistan remained unchanged. The price of silver per tola stayed at Rs2,150, while per 10 grams was Rs1,843. The stability in silver prices provided some relief to investors.
Market Analysis
Market analysts attribute the drop in gold prices to a stronger US dollar and rising bond yields. The dollar index climbed to a two-week high, making gold more expensive for holders of other currencies. Additionally, expectations of further interest rate hikes by the Federal Reserve have dampened investor sentiment towards non-yielding assets like gold.
In Pakistan, the decline in gold prices is expected to boost demand, especially ahead of the wedding season. However, the overall economic uncertainty and inflation continue to influence market dynamics. The association noted that the current prices are still relatively high compared to historical averages.
Investors are advised to monitor international trends and local economic indicators before making purchasing decisions. The gold market remains volatile, and further fluctuations are anticipated in the coming days.
