ISLAMABAD: Following a continuous upward trend, gold prices in Pakistan have recorded a notable decline.
According to the All Pakistan Gems and Jewellers Association, the price of gold has dropped by Rs 3,700 per tola across the country, bringing the new rate to Rs 482,462 per tola.
Similarly, the price of 10 grams of gold has decreased by Rs 3,172 and is now fixed at Rs 413,633.
Meanwhile, in the international market, gold prices have also fallen by 37 dollars, settling at 4,601 dollars per ounce.
Gold prices in Pakistan are influenced by several interconnected factors, both local and international.
The most important factor is the global gold price, as Pakistan largely follows international market trends.
Any increase or decrease in gold rates in the world market directly impacts local prices.
Another major factor is the exchange rate of the Pakistani rupee against the US dollar.
When the rupee weakens, gold becomes more expensive in Pakistan, even if international prices remain stable.
Inflation also plays a key role, as gold is considered a safe investment during periods of economic uncertainty.
Higher inflation increases demand for gold, pushing prices upward. Interest rates, government economic policies, import duties, and taxes further affect gold prices.
Additionally, local demand during wedding seasons, festivals, and investment trends can cause short-term price fluctuations in the domestic market.
