KARACHI, PAKISTAN: The domestic gold market continued its downward trajectory this week, with prices plunging sharply amid a noticeable decline in consumer demand and a dip in international bullion rates.
According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold dropped by Rs19,538 per tola over the past six days, settling at Rs437,362 per tola. Similarly, 10 grams of gold fell by Rs6,463, closing at Rs374,967.
In the global market, gold shed nearly $85 per ounce, hitting $4,150 on Wednesday, as investors turned cautious ahead of key U.S. economic data. The global slide has directly impacted Pakistan’s local bullion market, where gold traders report sluggish buying activity despite the ongoing wedding season.
Jewellers and manufacturers say the continued volatility and high prices have discouraged potential buyers. “Even after the drop, gold remains out of reach for many people,” said the chairman of the All Pakistan Jewellery Manufacturers Association. “We’re seeing fewer customers and lower orders, especially from middle-income households.”
The prolonged slowdown is also taking a toll on the jewellery industry. Many manufacturing units have reportedly scaled down operations, with nearly 60 percent struggling to sustain their businesses amid weak consumer interest and high operational costs.
Analysts predict that unless demand rebounds, prices may continue to fluctuate, keeping the market under pressure in the coming weeks.
This story has been reported by PakTribune. All rights reserved.