KARACHI: Gold prices recorded a sharp decline in Pakistan on Monday, July 13, following a fall in the international bullion market, with the rate of 24-karat gold dropping by Rs3,800 per tola.
The price of gold settled at Rs429,736 per tola, compared with the previous rate of Rs433,536.
The price of 10 grams of 24-karat gold also declined by Rs3,258, falling from Rs371,687 to Rs368,429 in local bullion markets.
Gold Price in Pakistan Today
| Category | Previous Price | Decline | New Price |
|---|---|---|---|
| 24K gold per tola | Rs433,536 | Rs3,800 | Rs429,736 |
| 24K gold per 10 grams | Rs371,687 | Rs3,258 | Rs368,429 |
| International gold per ounce | $4,111 | $38 | $4,073 |
The decline in local gold rates followed a $38 drop in the international bullion market, where the price fell to $4,073 per ounce.
International spot gold was trading close to $4,072 per ounce on Monday as higher oil prices, a stronger US dollar and expectations that US interest rates could remain elevated weighed on demand for the non-yielding precious metal.
Gold came under pressure for a second consecutive session as escalating tensions between the United States and Iran pushed oil prices higher and strengthened inflation concerns.
Higher inflation expectations can encourage central banks to maintain elevated interest rates. This can reduce the attraction of gold because the metal does not offer interest or dividend income.
Silver Price in Pakistan Also Declines
Silver prices also moved lower in the domestic market on Monday.
The price of silver fell by Rs123 to Rs6,339 per tola, compared with the previous rate of Rs6,462.
The rate for 10 grams of silver declined by Rs106, falling from Rs5,540 to Rs5,434.
| Category | Previous Price | Decline | New Price |
|---|---|---|---|
| Silver per tola | Rs6,462 | Rs123 | Rs6,339 |
| Silver per 10 grams | Rs5,540 | Rs106 | Rs5,434 |
Other precious metals, including international silver, platinum and palladium, also traded lower during Monday’s session.
Why Did the Gold Price Fall Today?
Gold prices were pressured by a combination of rising oil prices, inflation concerns, stronger bond yields and expectations surrounding US monetary policy.
Although geopolitical uncertainty traditionally supports demand for gold as a safe-haven asset, a sharp rise in oil prices can also increase inflation expectations.
That may lead traders to expect tighter monetary policy or higher interest rates for a longer period, strengthening the dollar and making gold less attractive to investors.
Market participants are also monitoring upcoming US inflation figures, retail sales data and statements from Federal Reserve officials for fresh signals about the direction of interest rates.
What Determines Gold Prices in Pakistan?
Gold prices in Pakistan are primarily influenced by movements in the international bullion market and the value of the Pakistani rupee against the US dollar.
Daily local rates can also be affected by domestic demand, international shipping and trading conditions, jewellery-market activity and price announcements issued by bullion associations.
The latest decline provides some relief to local buyers, although precious metal rates may continue to fluctuate because of changing global economic conditions and geopolitical tensions.
Also Read: Gold Prices Rise Again in Pakistan as Global Market Extends Gains
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