KARACHI (Dunya News) — Gold prices in Pakistan fell sharply on Friday, with the price of 24-karat gold declining by Rs7,000 per tola amid a downturn in international bullion markets.
According to the Sarafa Association, the price of 24-karat gold fell to Rs424,536 per tola, while the price of 10 grams declined by Rs6,001 to Rs363,971.
The decline followed a drop in international gold prices, where the precious metal lost $70 per ounce to reach $4,020.
Silver prices also recorded a significant decrease in domestic and international markets, reflecting the broader downward movement in precious metals.
Gold prices decline in local market
The latest reduction brought some relief to consumers and jewellery buyers in Pakistan, where gold prices have remained a key concern for households purchasing jewellery for weddings and other occasions.
The price of 24-karat gold fell by Rs7,000 per tola, while the 10-gram rate dropped by Rs6,001, according to the association.
Gold prices in Pakistan are influenced by international bullion rates, exchange-rate movements and domestic market conditions. Consequently, changes in global prices can have a direct impact on local rates.
However, the extent of the domestic price movement also depends on currency fluctuations and the pricing mechanisms followed by local bullion markets.
International bullion prices retreat
International gold prices also declined on Friday, with the price falling by $70 per ounce to $4,020.
Movements in international bullion markets can reflect changes in investor demand, expectations about interest rates, currency movements and broader economic uncertainty.
Gold is often considered a safe-haven asset during periods of financial or geopolitical instability. However, its price can also decline when investors adjust their positions or market expectations change.
The reported fall in international prices contributed to the reduction in domestic gold rates.
Silver prices also fall
Silver followed the downward trend, with the price of 24-karat silver in Pakistan decreasing by Rs221 per tola to Rs5,865.
Like gold, silver prices are affected by international market movements and exchange-rate changes. However, silver also has significant industrial applications, meaning that expectations about manufacturing activity and industrial demand can influence its price.
The latest reduction in both precious metals highlighted the broad-based decline recorded in local bullion trading.
What the decline means for consumers
Lower gold prices can make jewellery purchases relatively more affordable for consumers, particularly families preparing for weddings and other traditional occasions.
For investors, however, a single day's decline does not necessarily indicate a sustained downward trend. Future prices will depend on developments in international markets, currency movements and changing investor demand.
Jewellery buyers should also note that retail prices may differ from quoted bullion rates because of making charges, taxes and other applicable costs.
Market participants will continue to monitor international gold prices and domestic currency movements for indications of the direction of bullion prices in the coming sessions.
For now, the reported decline has reduced gold and silver prices in Pakistan, although the sustainability of the downward trend remains uncertain.