KARACHI: Gold prices in Pakistan and international markets witnessed a significant decline for the fifth consecutive day, bringing major relief to buyers and investors tracking gold price trends.
According to the All Pakistan Sarafa Association, the persistent downward momentum in local and international markets has dragged down the gold price significantly across all denominations.
In the local market, the price of 24-karat per tola gold plummeted by 11,300 rupees, settling at 454,036 rupees.
Similarly, the price of 10 grams of 24-karat gold registered a substantial decrease of 9,688 rupees, bringing it down to 389,262 rupees.
Precious metals experienced a broad market correction, as the price of per tola silver also dropped by 270 rupees to reach 6859 rupees.
On the global front, the international market faced heavy selling pressure, with spot gold tumbling by 113 dollars to rest at 4,315 dollars per ounce, further dictating the downward trajectory of the domestic gold price.
Market Overview: Gold Prices in the Past Six Months
The movement of gold prices over the past six months has been characterized by extreme volatility, marked by historic peaks followed by sharp, sudden corrections.
Earlier in the year, the precious metal embarked on an aggressive bull run, driven by shifting global economic cues, fluctuating inflation data, and changing expectations regarding central bank interest rate cuts.
This intense buying momentum culminated in late January when international spot gold blasted to an unprecedented all-time record high of nearly 5,590 dollars per ounce.
Domestic rates in Pakistan mirrored this exponential surge, scaling unprecedented heights that heavily restricted physical retail demand.
However, the second quarter and the beginning of the third quarter introduced a dramatic shift in market sentiment.
As major economies grappled with sticky inflation reports and central banks hinted at maintaining higher interest rates to stabilize currency values, the safe-haven appeal of bullion faced intense scrutiny.
Investors began reallocating portfolios, leading to profit-taking sessions that gradually eroded a substantial portion of the year’s earlier gains.
By the arrival of September, gold had retreated significantly from its record highs, dropping more than 20 percent from its peak levels.
This recent five-day consecutive slump is a continuation of this broader macro-correction.
While geopolitical tensions and currency fluctuations still offer occasional pockets of support, the overall trend over the past half-year demonstrates that bullion remains highly sensitive to shifting monetary policies and market liquidations.
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For local consumers and investors in Pakistan, these fluctuations highlight the high-risk nature of precious metal investments as the market continues to recalibrate in response to global economic adjustments.
