KARACHI: Gold prices fell sharply in both domestic and international markets on Friday, according to market data, marking one of the steepest single-day declines in recent months.
International Market Slump
In the international bullion market, the price of gold dropped by 155perounce,bringingthenewglobalrateto4,545 per ounce. The decline comes after a prolonged period of bullish momentum that had pushed gold to record highs earlier this year.
Analysts attributed the sudden drop to profit-taking by investors, a strengthening US dollar, and easing geopolitical tensions that had previously driven safe-haven demand. The closure of the Strait of Hormuz conflict had earlier pushed prices upward, but recent diplomatic efforts appear to have cooled some of the market anxiety.
Domestic Market Impact
Following the global trend, local bullion markets also saw a steep decline. The price of 24-karat gold per tola fell by Rs15,500 to Rs476,862 in Pakistan. Similarly, the price of 10 grams of gold declined by Rs13,289 to Rs408,832.
The drop in domestic prices brings some relief to local buyers who had been facing record-high rates in recent weeks. However, the rupee’s exchange rate volatility continues to influence local bullion pricing, as Pakistan imports most of its gold.
Silver Prices Also Drop
Meanwhile, silver prices also dropped in the local market, with the price per tola decreasing by Rs972 to Rs8,232, while 10 grams fell by Rs833 to Rs7,057. Silver, often seen as a more affordable alternative to gold for small investors, typically follows gold’s price movements.
Market Outlook
Bullion traders noted that while the sharp decline may attract buyers looking to enter the market, further price volatility cannot be ruled out given ongoing global economic uncertainties and potential shifts in US monetary policy. Investors are advised to monitor international market trends closely before making purchasing decisions.
