KARACHI, PAKISTAN – Gold prices in Pakistan experienced a significant drop on Wednesday, mirroring the trend in international markets. The rate for 24-karat gold plummeted by Rs6,200, bringing the price down to Rs242,000 per tola.

Domestic Market Reaction

The Karachi Sarafa Association reported a corresponding decrease in the price of 24-karat gold per 10 grams, which fell by Rs5,315 to Rs207,476. The price of 22-karat gold also saw a reduction, dropping to Rs190,186 per 10 grams. This decline in gold prices reflects a broader trend influenced by various economic factors both domestically and internationally.

Silver Prices Follow Suit

In addition to gold, silver prices in the domestic market also saw a decrease. The price of 24-karat silver fell by Rs50 per tola, bringing it to Rs2,800, while the 10-gram price dropped by Rs42.87 to Rs2,400.54. The decline in silver prices accompanies the broader trend in precious metals driven by market forces.

International Market Influence

Globally, spot gold prices fell from recent record highs, trading at $2,364 an ounce, down 0.62% on the day. This decline follows a 1.74% drop on Wednesday. The decrease in international gold prices is influenced by several factors, including economic policies and global market dynamics.

Federal Reserve Policy Impact

One of the key factors affecting gold prices is the Federal Reserve’s recent policy stance. The minutes from the Fed’s latest policy meeting indicated that officials intend to maintain higher interest rates for a longer period to combat inflation. This policy decision has a dampening effect on gold prices, as higher interest rates typically strengthen the dollar, making gold less attractive as an investment.

China’s Bullion Imports Decline

Another significant factor is the slowdown in China’s bullion imports. As the world’s largest consumer of gold, changes in China’s demand have a considerable impact on global prices. In April, China’s overseas purchases of physical gold fell to 136 tons, marking a 30% decline from the previous month and the lowest total for the year, according to the latest customs data. This reduction in demand from China contributes to the downward pressure on gold prices.

Silver Market Trends

International silver prices also followed a downward trend, falling to $30.5 an ounce. The decline in silver prices is attributed to similar economic factors affecting the gold market, including investor sentiment and macroeconomic conditions.

Domestic Purchasing Power

The drop in gold prices within Pakistan is particularly notable given the context of reduced purchasing power among consumers. Despite the significant price drop, the current rate is still kept Rs4,000 below its actual cost, indicating efforts to make gold more accessible in light of economic challenges faced by the populace.



Experienced Senior Research Analyst



Sikander Raza, a Senior Technical Analyst



Hamza Saleem, a Senior Business Analyst



Irsa Sajjad, as a Research Analyst for Equities

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