Gold rates in Pakistan fell massively, with a reduction of approximately Rs. 5,000 per tola. This huge reduction followed a dip in global gold rates, which reached a three-week low on Wednesday.
Moreover, the recent spike in the value of the US dollar, primarily due to investors moving towards it while former US President Donald Trump’s comeback to the spotlight, has influenced markets worldwide. A stronger dollar typically makes gold more expensive for those holding other currencies, leading to reduced demand and thus a drop in prices.
As per the reports from the Karachi Sarafa Association:
- Price of 24-carat gold was reduced by Rs. 5,600 per tola, bringing it to Rs. 276,800
- Price per 10 grams of gold also fell by Rs. 4,630, now holding at Rs. 237,311
- The third day in a row of declining gold prices locally, following smaller dips on Tuesday and Wednesday
Read more: Gold price per tola jumps to an all-time high of Rs 263,700 in Pakistan
Moreover, in the last month, gold prices in Pakistan had reached a record high of Rs. 287,900 per tola. However, the recent rising value of the dollar has resulted in a stabilizing effect on gold prices. As a protective investment, gold often sees price fluctuations in reaction to economic unpredictability and currency movements.
This recent fall provides some relief for local buyers and investors who have been encountering record-high prices in the previous months. Moreover, the continuous modifications and persistent tweaks strongly emphasize how sensitive precious metal prices are to both domestic demand and international currency shifts.