Key Point
- 24-carat gold falls by Rs 9,000 per tola in the local market
- The 10-gram rate also records a steep decline
- Drop follows downturn in global gold prices
- Silver prices edge lower in domestic trade
ISLAMABAD: Gold prices in Pakistan recorded a steep decline on Tuesday, with the rate of 24-carat gold falling by Rs 9,000 per tola in line with losses in international markets.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association, the new price of gold stands at Rs 514,762 per tola.
For international readers, a tola is a traditional South Asian unit of weight commonly used in bullion trade, and equals approximately 11.66 grams.
The price of 10 grams of 24-carat gold also dropped by Rs 7,716 to Rs 441,325, reflecting the broader downward adjustment in domestic bullion rates.
Local gold prices are closely tied to international benchmarks because Pakistan heavily relies on imported bullion.
When global prices decline, domestic rates adjust in the same direction, taking into account currency fluctuations and local market conditions.
Market analysts attributed the latest decline to a sharp correction in international gold prices, driven by shifting investor sentiment and movements in the US dollar.
Gold is globally traded in US dollars per ounce, and fluctuations in currency values can significantly influence local pricing in countries such as Pakistan.
Silver prices also moved lower in the domestic market. The price per tola of silver decreased by Rs 150 to Rs 8,014, and the rate for 10 grams fell by Rs 129 to Rs 6,870.
Gold is widely regarded in Pakistan as a store of value and a hedge against inflation and currency volatility.
Sudden price swings often affect jewellery demand as well as investment activity, particularly in urban centres where bullion trading volumes are significant.
Traders expect prices to remain sensitive to international market developments in the coming sessions.
