Gold and silver prices decline in Pakistan as global bullion market weakens

Gold and silver prices in Pakistan registered a notable decline on Thursday, mirroring a downward trend in international bullion markets

KARACHI: Gold and silver prices in Pakistan registered a notable decline on Thursday, mirroring a downward trend in international bullion markets. The decrease came after global precious metal prices fell, prompting a reduction in domestic rates across major bullion centers.

The price of gold in the local market dropped significantly during the day. The price of one tola of gold decreased by Rs2,300, bringing it down to Rs452,936. Similarly, the rate for 10 grams of gold fell by Rs2,070 and settled at Rs387,615.

The decline followed a drop in international gold prices, where the precious metal lost $23 per ounce and closed at $4,305 per ounce. Market experts attributed the fall to changing investor sentiment and fluctuations in global economic indicators, which continue to influence bullion markets worldwide.

Silver prices also moved lower both internationally and domestically. In the global market, silver declined by $1.44 per ounce to reach $68.80 per ounce. The impact was immediately reflected in Pakistan’s local bullion market, where the price of silver per tola fell by Rs144 to Rs7,359. Likewise, the price of 10 grams of silver dropped by Rs123, settling at Rs6,268.

The latest decline comes just a day after gold prices had posted modest gains in Pakistan. On Wednesday, local gold rates increased in line with a rise in international prices. The price of gold per tola climbed by Rs100 to reach Rs455,236, while the rate for 10 grams increased by Rs85 to Rs389,685.

The upward movement on Wednesday was driven by a recovery in international gold prices, which had strengthened after several days of fluctuations. Investors had shown renewed interest in precious metals amid ongoing uncertainty in global financial markets, helping support prices.

Trading activity in the bullion market had also faced disruption earlier in the week. The absence of official rates created uncertainty among traders and buyers, leading to reduced market activity for the day.

Prior to that, gold prices had witnessed a sharp surge on Monday. The price of gold per tola jumped by Rs10,800, reaching Rs455,136. The significant increase reflected strong momentum in international markets, where gold edged up by $1 per ounce to $4,328.

While gold moved higher on Monday, silver followed a different trajectory. The white metal recorded a slight decline in local markets, with prices slipping by Rs6 per tola to Rs7,503.

Analysts believe that precious metal prices are likely to remain volatile in the coming weeks as investors closely monitor global economic developments, interest rate expectations, currency movements, and geopolitical events. These factors continue to play a crucial role in determining the direction of gold and silver markets both internationally and in Pakistan.

Market participants are expected to keep a close watch on international trends, as any major shift in global bullion prices is likely to have a direct impact on local rates.