Business Desk 
Jun 22, 2024
After marking a significant uptick in its value during the previous session, gold rate in Pakistan witnessed a substantial decline on Saturday, signaling a notable shift in the international market dynamics.
According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) in Pakistan decreased by Rs1,400 per tola and Rs1,201 per 10 grams to settle at Rs241,500 per tola and Rs207,047 per 10 grams.
Per tola gold price in Pakistan touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024).
The association also mentioned that the price of gold is Rs1,500 per tola “undercost” in Pakistan, as compared to international market, showing that the Pakistani gold market was currently cheaper than the global.
Gold — which is considered a hedge against inflation — registered losses in the local market after a stronger-than-expected inflation data — which fell to its lowest level since May 2022 — softened expectations of a rate cut.
Similarly, gold rates decreased by $43 in the international market to settle at $2,320. Bullion price in the international market touched a record high of $2,431.29 on April 12.
Meanwhile, silver prices registered an uptick of Rs100 per tola and Rs85.76 per gram in the domestic market to settle at Rs2850 per tola and Rs2,443.41 per10 grams.
Gold price in Pakistan is announced by the association, 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.
Gold price in Pakistan has been volatile in Pakistan recently amid continued political and economic uncertainty and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.
