Gold prices fall Rs6,700 per tola amid global market slump

KARACHI: Gold prices in the local market continued their downward trajectory on Thursday, posting a sharp decline of Rs6,700 per tola, in line with a slump in international bullion markets.

According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the per tola price of gold dropped to Rs335,200, while the 10-gram gold price declined by Rs5,745, settling at Rs287,379.

The decline mirrors a significant dip in global gold markets, where prices dropped by $67 to close at $3,168 per ounce. Local gold rates are generally calculated with a $20 premium over international prices.

Market analysts attributed the fall to a combination of easing international tensions and renewed investor confidence in equity markets. “Investors are reallocating funds into riskier assets such as stocks and bonds after a brief surge in safe-haven demand earlier this month,” said a senior trader at Karachi’s bullion market. “Gold, which had reached record highs in April, is now correcting as global uncertainty fades.” Just weeks ago, gold hit its peak of Rs363,700 per tola on April 22 amid global trade concerns and geopolitical tensions. However, recent diplomatic progress between regional powers and a global shift away from protective assets have dampened demand for the metal.

In addition to gold, silver prices also experienced a notable drop. The per tola price of silver declined by Rs105, bringing it down to Rs3,377, while the 10-gram silver rate fell by Rs90 to Rs2,895.