Business Desk 
Jul 23, 2024
An undated image of gold bars. — iStock
Following an indication of a remarkable reinstation during the previous session, gold price in Pakistan dropped slightly on Tuesday owing to a substantial downturn in yellow metal's cost in the international market.
According to the data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold decreased by Rs500 per tola and Rs429 per 10 grams to settle at Rs250,500 and Rs214,763.
Gold price touched an all-time high of Rs254,000 per tola in the local market on Wednesday as international investors opted for heavy positions in anticipation of the US central bank cutting interest rates in September 2024.
However, the market retreated on Thursday and the price plunged by Rs3,000 per tola.
The association reported that the price of gold has been “under cost” by Rs1,000 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is less expensive than the world market.
Silver prices in Pakistan remained unchanged at Rs2,920 per tola and Rs2,402 per 10 grams, respectively.
"Besides profit taking, the market is down on this narrative of a soft landing; it could put pressure on the price of gold, as investors will shift money from a safe to more riskier investment," said Alex Ebkarian, chief operating officer at Allegiance Gold.
"We are seeing a lot more investment-driven decisions demand rise in gold," he added.
How is gold price determined in Pakistan?
Gold price in Pakistan is announced by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.
Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.
