Karachi — Gold Prices Fall Amid Global Market Weakness
Gold prices in Pakistan fell sharply on Tuesday, mirroring the decline in international bullion rates. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola dropped by Rs3,500, closing at Rs420,362.
Similarly, the 10-gram gold rate fell by Rs3,001, settling at Rs360,392. The dip follows a brief surge on Monday, when gold had gained Rs1,300 per tola to reach Rs423,862.
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Global Gold Rates Also Decline
The drop in domestic gold prices aligns with a global downward trend, as international spot prices fell by $35 per ounce, reaching $3,980 (including a $20 premium) during the trading session.
Traders attributed the decline to profit-taking and a stronger U.S. dollar, which often pressures gold prices globally. Analysts said investor sentiment is also shifting toward riskier assets amid expectations of improved global economic stability.
“Gold’s short-term correction is part of the natural market cycle,” said one Karachi-based dealer. “But investors are still holding the metal as a safe hedge against inflation and currency volatility.”
Silver Prices Also Slip
Alongside gold, silver prices saw a downward adjustment. The rate per tola fell by Rs130, closing at Rs5,022. The price of 10-gram silver also reflected a marginal decrease in line with the broader metals market.
Analysts expect silver to follow gold’s pattern in the coming days, influenced by international commodity movements and dollar strength.
Why Gold Prices Are Falling
Experts point to several factors behind the decline in both local and global gold prices:
- Dollar Strength: A firmer dollar makes gold more expensive for holders of other currencies.
- Investor Caution: Many traders are locking in profits after recent record highs.
- Interest Rate Outlook: Central banks are expected to maintain current rates, reducing gold’s appeal as a non-yielding asset.
- Commodity Market Volatility: Oil and stock movements are indirectly affecting investor behavior in precious metals.
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Outlook for the Coming Days
Jewellers expect price fluctuations to continue in the near term as markets react to global economic data and shifts in investor sentiment.
However, with inflation concerns still present, demand for gold as a safe investment is likely to remain steady — especially in Pakistan, where gold remains a popular hedge against the rupee’s volatility.
As reported earlier by Pashto Times, experts advise small investors to monitor international market trends closely before making new purchases or selling existing holdings.
