Gold prices reverse rally, fall by Rs3,500 per tola

The recent upward trend in gold prices in Pakistan and international markets came to an end on Thursday, with domestic bullion rates witnessing a noticeable decline after a sharp rally over the past week.

KARACHI: The recent upward trend in gold prices in Pakistan and international markets came to an end on Thursday, with domestic bullion rates witnessing a noticeable decline after a sharp rally over the past week.

According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-carat gold dropped by Rs3,500 per tola, bringing the new price to Rs460,436 per tola.

The decline was also reflected in the price of gold measured by weight. The price of 10 grams of 24-carat gold decreased by Rs3,001, settling at Rs394,749.

The latest correction comes after a strong rally in the domestic bullion market. Gold had gained around Rs36,000 per tola over the previous seven days, highlighting the extent of the recent surge before Thursday’s decline.

The local market also recorded a fall in silver prices. The price of silver declined by Rs175 per tola, taking its rate to Rs6,936.

Global gold prices also decline

The correction in Pakistan’s gold market coincided with a decline in international bullion prices. In the global market, gold fell by $35 per ounce, with the international price standing at around $4,380 per ounce.

Market participants are closely monitoring developments in global financial markets, particularly movements in the US dollar, interest-rate expectations and economic data, which can influence investor demand for precious metals.

Gold is generally considered a safe-haven asset, and its price can rise when investors seek protection from economic or geopolitical uncertainty. However, sharp gains can also prompt profit-taking, resulting in short-term corrections such as the one witnessed on Thursday.

Despite the latest decline, gold prices remain significantly elevated after the substantial increase recorded during the past week. Traders and investors are expected to keep a close watch on international bullion movements and currency trends for further direction in the local market.