ISLAMABAD: The gold market in Pakistan has experienced a notable decline over the past eight days, with the price of 24-karat gold decreasing by Rs.12,000 per tola. This significant downward trend reflects shifting dynamics in both the local and international markets.
On Thursday, the All Pakistan Sarafa Gems and Jewelers Association reported a modest decline of Rs.100 per tola, bringing the price down to Rs.352,900 compared to Rs.353,000 the previous day.
Despite being a minor drop, it contributed to the overall downward momentum observed in the last week and a half.
During a continuous five-day losing streak earlier in the week, gold prices plummeted by Rs.10,200 per tola. This substantial drop led to growing concern among traders and investors alike, as market stability remained uncertain.
The downward trend was briefly interrupted on Wednesday when the price increased by Rs.300 per tola, suggesting a possible recovery. However, that short-lived optimism faded as prices dipped again on Thursday by Rs.2,000 per tola.
Analysts believe that fluctuations in international gold prices and changes in the local currency exchange rate have significantly impacted domestic prices.
The global gold market is currently undergoing uncertainty, primarily due to fluctuating dollar rates, changing inflation expectations, and geopolitical developments.
Local jewelers and investors are closely monitoring these trends, anticipating potential price movements in the coming days. The market’s volatility has led many buyers to adopt a wait-and-see approach.
The consistent price reduction has resulted in cautious behavior from gold investors, many of whom are waiting for signs of stability before re-entering the market.
Traders are also expecting further clarity from international financial markets, which remain unpredictable due to various economic pressures.
While short-term recovery is possible, sustained gains may require stronger support from international prices and a more stable rupee-dollar exchange rate.
