Gold prices in Pakistan continued their downward spiral on Tuesday, with 24-karat gold trading at Rs274,300 per tola, marking a significant drop of Rs4,100. Over the past two days, the precious metal has lost a staggering Rs8,600 per tola, equating to a 3.04% decline in its value.
GLOBAL GOLD MARKETS SHOW WEAKNESS
The bearish trend was also observed globally, as spot goldspot gold closed yesterday’s session at $2,625.62 per ounce, down $90.72 or 3.34%. The dip follows a wave of profit-taking by investors after last week’s surge fueled by heightened geopolitical tensions.
Adding to the pressure, the appointment of fund manager Scott Bessent as the new U.S. Treasury Secretary dampened the appeal of safe-haven assets like gold, according to a report by Reuters.
LOCAL GOLD PRICES HIT HARD
The domestic market mirrored the global slump, with 24-karat gold per 10-gram priced at Rs235,168, showing a reduction of Rs3,515. Similarly, 22-karat gold dropped to Rs215,571 per 10-gram, according to the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA).
SILVER PRICES REMAIN STABLE
Amid the gold market’s turbulence, silver prices stayed steady in the domestic market. 24-karat silver continued to be sold at Rs3,400 per tola and Rs2,915 per 10-gram.
REASONS BEHIND THE DECLINE
• Profit-Taking: Last week’s rally, driven by geopolitical uncertainties, prompted investors to cash in on gains.
• Policy Impact: The appointment of Scott Bessent as the U.S. Treasury Secretary curtailed safe-haven demand for gold.
• Global Market Sentiment: A broader shift in investor focus led to reduced enthusiasm for precious metals.
OUTLOOK FOR INVESTORS
While the recent drop has surprised many, analysts suggest monitoring geopolitical developments and U.S. economic policies closely. A recovery in gold prices may depend on renewed safe-haven buying if market uncertainties resurface.
Gold’s sharp decline highlights its volatility, urging investors to strategize carefully and diversify their portfolios amidst global and local market changes.
