- Gold prices in Pakistan declined after a four-session rise.
- Data from ASSJA showed a drop of Rs1,300 per tola.
- During Muharram, demand for gold typically decreases in Pakistan.
Data from the All Sindh Sarafa and Jewellers Association (ASSJA) revealed that gold prices fell by Rs 1,300 per tola and Rs 1,113 per 10 grams. The new rates settled at Rs 245,100 per tola and Rs 210,134 per 10 grams, respectively.
Traditionally, during Muharram, which marks the start of the Islamic New Year, demand for bullion tends to decrease in the local market.
The ASSJA also noted that the current price of gold in Pakistan is Rs 3,500 per tola cheaper compared to prices in Dubai, indicating relative affordability in the Pakistani market.
Silver prices remained stable in Pakistan, holding steady at Rs 2,900 per tola and Rs 2,486.28 per 10 grams.
In the global market, gold prices slipped as investors opted to secure profits after a recent surge. Spot gold declined by 0.6% to $2,377.75 per ounce by 0704 GMT, following a high not seen since late May.
US gold futures also saw a decrease of 0.5%, settling at $2,385.50 per ounce. Analysts attributed this pullback to a softer-than-expected US inflation report and cautious remarks from Federal Reserve Chair Jerome Powell, hinting at potential interest rate adjustments in September.
Commenting on market dynamics, Matt Simpson, a senior analyst at City Index, suggested that while China refrained from adding to its gold reserves in June, overall global demand for gold remains robust.
"China's temporary pause in gold purchases does not diminish overall demand, which continues to support a bullish outlook for gold prices," Simpson noted.
As market uncertainties persist, gold remains a focal point for investors navigating economic indicators and geopolitical developments.
Stay updated with the latest developments in the gold market as global economic conditions evolve.
How is gold price determined in Pakistan?
The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) announces daily gold prices in Pakistan for local markets from Monday to Saturday each week.Pakistan has a limited presence in the global gold market, primarily relying on imports to meet its demand as the country does not produce the precious metal domestically.
Therefore, the gold price in Pakistan is determined based on global market prices, the exchange rate between the rupee and the dollar, and the supply and demand dynamics in the domestic market. The latest local market prices reflect recent trading transactions between buyers and sellers.
