Gold prices in Pakistan recorded a sharp decline on Friday, with the price of 24-karat gold dropping by Rs14,900 per tola to Rs438,036, according to the latest rates issued by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA).
The price of 24-karat gold per 10 grams also fell by Rs13,410, bringing it down to Rs374,205. Meanwhile, the rate of 22-karat gold stood at Rs343,325 per 10 grams.
Silver prices also moved lower in the local market. The price of 24-karat silver declined by Rs413 per tola to Rs6,946, while the rate per 10 grams dropped by Rs373 to Rs5,895.
The fall in domestic gold prices came in line with weaker international bullion markets, where spot gold was trading at around $4,164 per ounce, down by nearly $22.9 or 0.55 percent from the previous session.
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Market analysts said the decline in global gold prices was driven by a stronger US dollar and growing expectations that interest rates in the United States would remain higher for longer following hawkish signals from the US Federal Reserve.
A stronger dollar increases the cost of gold for buyers using other currencies, which usually leads to weaker demand for the precious metal.
The Federal Reserve’s cautious approach toward inflation and the possibility of further interest rate hikes have also affected investor sentiment. At the same time, higher bond yields have made interest-bearing assets more attractive than gold.
Gold prices in Pakistan largely depend on international bullion rates, movements in the rupee against the US dollar and demand in the local market.
Traders believe price fluctuations are likely to continue as investors keep a close watch on US monetary policy, currency trends and global geopolitical developments.