KARACHI: Gold prices in Pakistan witnessed a sharp decline on Monday, reversing the upward trend seen a day earlier, as both local and international markets turned bearish.
According to the All Pakistan Gems and Jewellers Association, the price of gold per tola dropped significantly by Rs4, 900, bringing it down to Rs501, 162.
Similarly, the price of 10 grams of gold decreased by Rs4, 201 to settle at Rs429, 665.
In the global market, gold prices also fell by $49 per ounce, reaching $4,788, contributing to the downward adjustment in domestic rates.
Similarly, silver prices increased by $1.45 per ounce in the global market, reaching $79.33. However, contrary to the international trend, domestic markets saw a drop in prices.
According to market data, the price of silver per tola in Pakistan decreased by Rs145, settling at Rs8, 417, while the price of 10 grams of silver fell by Rs124 to Rs7, 216.
Traders attribute the divergence between global and local prices to currency fluctuations and adjustments in domestic pricing mechanisms, which sometimes offset gains seen in international markets.
Market analysts say the sudden drop reflects volatility in international bullion markets, which directly impacts local pricing.
Traditionally regarded as a safe-haven investment, gold tends to rise during periods of inflation, political uncertainty, and economic instability.
For centuries, gold has served as a reliable store of value and a hedge against uncertainty. Investors often shift toward gold when confidence in other asset classes weakens.
It is noteworthy that last year Pakistan revised its gold pricing mechanism, under which domestic gold rates are set at a $20 per ounce premium over international market prices.
