- Gold prices in Pakistan saw a slight drop on Tuesday.
- The local price of gold is cheaper compared to international rates.
- Pakistan meets its gold demand through imports.
ISLAMABAD: Demonstrating consistently dramatic shifts in its value over the past few sessions, the gold price in Pakistan dropped slightly on Tuesday, mirroring a small decline in the international market.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold in Pakistan decreased by Rs500 per tola and Rs429 per 10 grams, settling at Rs241,500 per tola and Rs207,047 per 10 grams, respectively. This decrease follows the record high of Rs 252,200 per tola reached on Saturday, April 20, 2024.
The APSGJA noted that the price of gold in Pakistan is currently Rs 1,500 per tola, “undercost” compared to the international market, indicating that the local gold market is cheaper than the global market.
Gold, traditionally seen as a hedge against inflation, registered losses in the local market after stronger-than-expected inflation data—dropping to its lowest level since May 2022—dampened expectations of a rate cut. In the international market, gold prices decreased by $2, settling at $2,326 per ounce. The global bullion price had reached a record high of $2,431.29 on April 12.
Meanwhile, silver prices in Pakistan remained unchanged at Rs 2,850 per tola and Rs 2,443.41 per 10 grams.
The gold price in Pakistan is announced by the APSGJA, which sets the rates for local markets six days a week from Monday to Saturday. Pakistan, a small market for gold at the global level, meets its demand through imports, as it does not produce the precious metal locally.
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Accordingly, the gold rate in Pakistan is determined by considering global market prices, the rupee-dollar exchange rate, and domestic market demand and supply. The latest local market price reflects recent trade transactions between buyers and sellers.
Gold prices in Pakistan have been particularly volatile recently, mainly due to the annual budget announced by the federal government about two weeks ago. During such times, people tend to buy gold as a safe investment and a hedge against economic uncertainties.
