KARACHI: Gold prices dropped significantly in Pakistan on Friday, with the price of one tola falling by Rs3,600 in line with a decline in international bullion markets.
According to the latest market rates, the price of one tola of gold decreased to Rs421,836, while the price of 10 grams of gold fell by Rs3,086 to Rs361,656.
In the international market, gold prices declined by $36 per ounce, bringing the global price to $3,994 per ounce, contributing to the downward trend in domestic rates.
Meanwhile, silver prices also registered a sharp decline. The price of one tola of silver dropped by Rs126 to Rs6,029 in the local market.
Gold has traditionally been regarded as a safe-haven investment, with its value typically rising during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as both a store of wealth and a form of currency. Investors often turn to the precious metal when confidence in other asset classes weakens, making it a preferred hedge against market volatility.
Last year, Pakistan revised its mechanism for determining domestic gold prices. Under the new formula, the local gold price is set at $20 per ounce above the prevailing international market rate, reflecting adjustments made by the country’s bullion pricing system.
More read, Gold prices drop sharply in Pakistan after recent rally
Earlier, Gold prices in Pakistan fell sharply after a sustained upward trend, with the price of one tola declining by Rs5,600 to Rs424,136, according to the All Pakistan Sarafa Gems and Jewelers Association.
The association said the price of 10 grams of gold also dropped by Rs4,801 to Rs363,628. The decline followed a fall in international bullion markets, where gold lost $56 per ounce to trade at $4,017.
