KARACHI: Gold prices in Pakistan fell sharply on Tuesday, with the price of 24-karat gold declining by Rs3,800 per tola as the precious metal also recorded a significant drop in the international market.
According to the All Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold decreased to Rs453,336 per tola from the previous level, registering a decline of Rs3,800.
The price of 10 grams of 24-karat gold also decreased by Rs3,258, falling to Rs388,662.
The latest decline followed a drop in international gold prices, with the price of gold falling by $38 per ounce to $4,308.
The decline in the international market was reflected in domestic bullion prices, where gold has remained highly sensitive to movements in global prices and exchange-rate trends.
The latest reduction provides some relief to consumers and jewellers after gold prices had remained at exceptionally high levels in the domestic market. However, despite the one-day decline, the price of gold remains above Rs450,000 per tola, keeping the precious metal beyond the reach of many ordinary buyers.
Gold is traditionally considered a safe-haven asset, and its international price is influenced by a range of factors, including investor demand, geopolitical developments, interest-rate expectations, currency movements and broader economic uncertainty.
A decline in international gold prices generally puts downward pressure on domestic bullion prices, although the extent of the impact in Pakistan also depends on movements in the rupee-dollar exchange rate and local market conditions.
The latest data showed that the decline was not limited to gold, as silver prices also moved lower in the domestic market.
According to the All Pakistan Sarafa Association, the price of 24-karat silver decreased by Rs122 per tola to Rs6,802.
The simultaneous decline in gold and silver prices indicates a broad-based correction in the domestic precious metals market following the latest movement in international bullion prices.
For gold buyers, the decline of Rs3,800 per tola means that a standard one-tola purchase is now less expensive than it was a day earlier. However, the prevailing price remains substantially higher than historical levels, reflecting the broader rise in international precious metal prices.
Jewellers and market participants will continue to monitor international bullion prices, particularly developments that could influence investor demand for safe-haven assets.
The direction of the rupee against the US dollar will also remain important for the Pakistani market, as imported precious metals are ultimately influenced by international dollar-denominated prices.
The latest decline therefore offers some short-term relief to gold buyers, but the market remains exposed to volatility in global bullion prices and currency movements.
With international gold currently trading at $4,308 per ounce, further movements in the global market could lead to corresponding changes in domestic gold and silver prices in the coming trading sessions.