Gold and silver prices continued their downward trend in both international and domestic markets on Saturday, extending losses recorded earlier in the week amid ongoing volatility in the bullion sector.
In the international bullion market, the price of gold declined by $6 per ounce, settling at $4,539 per ounce. Following the global trend, local gold prices in Pakistan also witnessed a decrease.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola in Pakistan dropped by Rs600, reaching Rs476,262. Similarly, the price of 10 grams of gold fell by Rs515 to Rs408,317.
Silver prices also experienced a significant decline in the domestic market. The rate of silver per tola decreased by Rs159 to Rs8,073, while the price of 10 grams of silver fell by Rs136 to Rs6,921.
Sharp Decline Recorded a Day Earlier
The latest drop follows a major decline recorded a day earlier in both international and local bullion markets. On Friday, gold prices in the international market plunged by $155 per ounce, bringing the rate down to $4,545 per ounce.
In Pakistan, gold prices per tola dropped sharply by Rs15,500 to Rs476,862, while the rate for 10 grams of gold decreased by Rs13,289 to Rs408,832, according to the Sarafa Association.
Silver also remained under pressure during the previous trading session. The price of silver per tola declined by Rs972 to Rs8,232, while the rate for 10 grams of silver fell by Rs833 to Rs7,057.
Market Volatility Driven by Global Developments
Earlier in the week, gold prices had shown temporary recovery. On Thursday, gold prices in Pakistan increased by Rs1,000 per tola to Rs492,362 after global bullion markets remained relatively stable.
Analysts linked the fluctuations in precious metal prices to geopolitical tensions involving the United States, Israel, and Iran, along with diplomatic developments between the US and China. Investors also closely monitored movements in the US dollar index and global economic signals, which continued to influence bullion demand.
On Wednesday, gold had closed at Rs491,362 per tola after a decline of Rs1,100. Meanwhile, spot gold in the international market remained nearly unchanged at $4,689.99 per ounce, while US gold futures for June delivery slipped by 0.2% to $4,695.80.
The US dollar index also edged up by 0.2%, making gold more expensive for buyers using other currencies and limiting further gains in bullion prices.
FAQS
Why did gold prices decline in Pakistan?
Gold prices in Pakistan declined mainly because of falling international bullion prices and fluctuations in the global economy.
What is the current price of gold per tola in Pakistan?
The latest reported price of gold per tola in Pakistan is Rs476,262.
How much did silver prices decrease?
Silver prices per tola dropped by Rs159, bringing the rate down to Rs8,073.
What affects international gold prices?
International gold prices are influenced by geopolitical tensions, inflation, interest rates, the US dollar index, and investor demand.
Why does the US dollar impact gold prices?
When the US dollar strengthens, gold becomes more expensive for holders of other currencies, which can reduce demand and lower prices.
Are gold prices expected to remain volatile?
Yes, experts believe gold prices may remain volatile due to ongoing global economic uncertainty and geopolitical developments.
Conclusion
Gold and silver markets continue to face strong volatility due to changing international economic conditions, geopolitical tensions, and fluctuations in the US dollar. The sharp decline in prices over the past two days reflects cautious investor sentiment in global bullion markets. In Pakistan, local gold and silver rates are closely following international trends, resulting in frequent price adjustments. Investors and traders are expected to remain focused on global political developments, inflation signals, and currency movements in the coming days, which could further impact precious metal prices.