The gold market in Pakistan has observed a noteworthy correction, with the price of 24-karat gold per tola dropping by Rs. 1,300, settling at Rs. 344,500 on Friday, according to the All Pakistan Sarafa Gems and Jewelers Association.
This marks a clear decline from the previous trading day’s value of Rs. 345,800 per tola.
Gold Price Trends
Just recently, 24-karat gold reached an all-time high of Rs. 363,700 per tola, which signaled heightened investor interest and global inflation concerns. However, over the past few days, the trend has reversed.
The precious metal has now fallen by Rs. 19,200 per tola from its historical peak, reflecting a significant shift in market dynamics and investor sentiment.
24-Karat Gold Per 10 Gram Price Also Declines
In tandem with the per tola dip, the price of 10 grams of 24-karat gold also experienced a notable drop. The rate fell by Rs. 1,114, closing at Rs. 295,353, down from the earlier price of Rs. 296,467. This consistent fall indicates a broader downward movement in the domestic bullion market.
22-Karat Gold Prices Drop Accordingly
The price of 10 grams of 22-karat , a commonly traded standard among consumers and jewelers alike, dropped to Rs. 270,740 from Rs. 271,771. This reflects the overall market correction and presents a temporary reprieve for consumers looking to purchase gold ornaments, wedding jewelry, or investment bars.
Silver Prices Remain Unchanged Amid Gold Fluctuations
Despite fluctuations in rates, silver prices remained steady, offering a contrast in the precious metals market. The per tola silver price held firm at Rs. 3,427, while the 10-gram silver rate was unchanged at Rs. 2,938. This price stability indicates relatively lower volatility in the silver market as compared to gold.
The international market also mirrored this trend, with the global price of decreasing by $13, now standing at $3,263 per ounce, down from $3,276.
Market Analysis
Several key factors have contributed to the recent downward trend in gold prices both in Pakistan and globally:
- US Dollar Strength: The recovery of the US dollar against other major currencies often leads to a drop in prices, as becomes more expensive for foreign investors.
- Interest Rate Expectations: Increasing interest rate speculation by central banks tends to divert investment from non-yielding assets like .
- Reduced Demand from Jewelers: Post-festive season and wedding season demand has cooled off, leading to reduced bulk purchases by jewelers.
- Profit-Taking by Investors: Many investors who bought at lower rates have begun offloading holdings to capitalize on recent highs.
City-Wise Gold Prices in Pakistan (Latest Update)
| City | 24K Gold Per Tola (PKR) | 24K Gold Per 10g (PKR) |
|---|---|---|
| Karachi | 344,500 | 295,353 |
| Lahore | 344,500 | 295,353 |
| Islamabad | 344,500 | 295,353 |
| Peshawar | 344,500 | 295,353 |
| Quetta | 344,500 | 295,353 |
| Multan | 344,500 | 295,353 |
The near future for prices remains uncertain but several market analysts are suggesting a potential stabilization after recent declines.
Alternatively, continued economic stability and rising interest rates could push lower, with analysts suggesting support levels at Rs. 340,000 per tola domestically, and $3,200 per ounce internationally.
