Gold Price Drops by Rs10,900 Per Tola in Pakistan as Global Rates Fall

• The price of 24-karat gold in Pakistan has fallen by Rs10,900 per tola, bringing the new rate to Rs416,536.
• The price of 10 grams of gold declined by Rs9,345 to Rs357,112, while silver dropped by Rs190 per tola.
• International gold prices fell by $109 to $3,940 per ounce amid expectations of higher US interest rates.

Gold prices in Pakistan recorded a significant decline as the rate of 24-karat gold dropped by Rs10,900 per tola, reflecting a sharp downturn in the international bullion market amid concerns over the outlook for US interest rates.

According to the All Pakistan Sarafa Association, the price of 24-karat gold fell to Rs416,536 per tola, compared with its previous rate of Rs427,436.

Similarly, the price of 10 grams of gold decreased by Rs9,345, bringing the new rate to Rs357,112 from Rs366,457.

Silver prices also moved lower in the domestic market, with the price of one tola declining by Rs190 to Rs5,578, compared with the previous rate of Rs5,768.

The decline in Pakistan’s bullion market followed a substantial fall in international gold prices, where the precious metal slipped below the psychologically important $4,000-per-ounce level.

In the global market, gold prices dropped by $109 per ounce to settle at $3,940, reflecting selling pressure as investors assessed the possibility of higher interest rates in the United States.

Expectations of tighter US monetary policy can weigh on gold prices because higher interest rates increase the relative appeal of interest-bearing investments compared with precious metals, which do not generate regular income.

Domestic gold prices are influenced by movements in international bullion markets and the Pakistani rupee’s exchange rate against the US dollar.

The latest decline has brought gold prices considerably below their previous levels, while silver has also registered losses in both domestic and international market conditions.