KARACHI: Gold and silver prices fell sharply in Pakistan on Tuesday, tracking declines in international bullion markets, according to the All Pakistan Sarafa Gems and Jewelers Association.
The price of 24-karat gold dropped by Rs. 2,500 per tola to Rs. 434,936. The price of 10 grams of gold fell by Rs. 2,143 rupees to Rs. 372,887.
In the international market, gold declined by $25 per ounce to $4,125, contributing to the drop in domestic prices.
Silver prices also moved lower. The price of silver fell by Rs.120 per tola to Rs. 6,559, while the price of 10 grams of silver decreased by Rs. 103 to Rs. 5,623.
Gold has traditionally been regarded as a safe-haven investment because its value tends to rise during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as a store of wealth and a form of currency. When investors lose confidence in other asset classes, they often turn to gold as a relatively stable investment to preserve their wealth.
In Pakistan, the mechanism for setting domestic gold prices was revised last year. Under the updated formula, local gold prices are calculated based on the international market rate plus a premium of $20 per ounce, reflecting domestic pricing adjustments.
More read, Gold prices jump sharply in Pakistan after days of decline
Earlier, Gold prices in Pakistan posted a sharp rebound after a sustained downward trend, according to the All Pakistan Gems and Jewellers Association.
The association said the price of 24-karat gold per tola jumped by Rs. 9,100, taking it to Rs. 428,736.
Similarly, the price of 10 grams of 24-karat gold increased by Rs. 7,802 to Rs. 367,572.
The domestic rally followed a strong gain in the international bullion market, where the price of gold rose by $91 to $4,063 per ounce, contributing to the sharp increase in local rates.
