KARACHI – Gold prices have declined this week, reflecting shifts in global demand and currency patterns, resulting in reduced rates at both international exchanges and within Pakistan.
Internationally, spot gold prices fell by approximately 1.2% amid strengthening of the US dollar and rising US Treasury yields, despite hesitation from investors amid persistent global economic concerns. The decline reflects a shift away from traditional safe-haven assets.
In Pakistan, local markets followed international trends as the Karachi Sarafa Bazaar lowered gold rates. The per-gram price of 24-karat gold dipped by Rs 800, closing at Rs 220,000, while the 22-karat variety dropped by Rs 740 to Rs 202,500. Buyers and traders were reportedly cautious, awaiting further clarity from central bank policies and currency movements.
Traders noted that pressure on the dollar-rupee exchange rate and government bond yields affected investor appetite for gold. Jewellery makers also reduced their margins modestly in line with the shifting metal rates. Market observers believe that unless economic indicators improve or rates stabilise, gold prices may continue to fluctuate.
While the recent drop offers favourable entry points for consumers looking to purchase jewellery or long-term investments, analysts caution that global macroeconomic developments could quickly reverse the trend. They recommend monitoring Federal Reserve decisions, currency trends, and geopolitical tensions that typically drive market sentiment.
This story has been reported by PakTribune. All rights reserved.
