ISLAMABAD: Gold prices in Pakistan continued their downward trend on Tuesday, with the price of one tola of gold falling by Rs1,000.
According to the All Pakistan Gems and Jewellers Association, the price of one tola of gold dropped by Rs1,000, bringing it down to Rs462,136.
The decline in the per-tola price also pushed down the rate of 10 grams of gold. The price of 10 grams of gold fell by Rs857, reaching Rs396,207.
The latest decline comes a day after gold prices recorded a significant Rs2,400 per-tola drop, highlighting continued volatility in the domestic bullion market.
Why Are Gold Prices Falling?
Gold prices are influenced by several major factors, including global gold market movements, fluctuations in the US dollar, economic uncertainty and geopolitical tensions.
Globally, investors often turn to gold as a safe-haven asset during periods of economic and political uncertainty. Increased demand can drive gold prices higher, while easing uncertainty or changing investment sentiment can put downward pressure on prices.
Interest rates also play a crucial role in determining gold prices. Expectations of lower interest rates can increase the appeal of gold because the non-interest-bearing asset becomes relatively more attractive compared with interest-generating investments.
In Pakistan, international gold prices are not the only factor determining local rates. The rupee-dollar exchange rate also plays a key role in setting gold prices in the domestic bullion market.
With global markets remaining sensitive to interest-rate expectations, currency movements and geopolitical developments, gold prices in Pakistan are likely to remain vulnerable to further fluctuations.
