Apr 23, 2024
Gold price in Pakistan registered a major drop on Tuesday after the precious commodity witnessed a significant reduction in its rates in the international market.
According to the data released by All Pakistan Sarafa Gems and Jewellers Association, the price of gold plunged by Rs7,800 per tola and Rs6,686 per 10 grams to settle at Rs240,900 and Rs206,533, respectively.
Gold price in Pakistan was on a rising spree since last week in the local and international market as investors were taking refuge in the precious metal — considered a safe haven — due to escalation in geopolitical tensions. The precious commodity touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024).
In the international market, the price plummeted by $72 per ounce to settle at a nearly two-week low of $2,309 as easing concerns of an escalation in the Middle East crisis and profit-taking coupled with the expectations regarding the key data for fresh clues on the US interest rate trajectory forced the investors to remain on the sidelines. Gold hit a record high of $2,431.29 on April 12 in the international market.
"Gold has been the recipient of different types of buying flows in recent months, and now one of those flows has slightly dried up with safe-haven demand receding. Investors are seeing this as an opportunity to lock in some profits after gold's recent (strong) run," said Tim Waterer, chief market analyst, KCM Trade.
Meanwhile, silver price in the local market recorded a decline of Rs100 per tola and Rs85.74 per 10 grams to settle at Rs2,650 and Rs2,271.94, respectively.
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.
