Gold prices in Pakistan slid for a fifth straight day on Saturday, reaching their lowest level in five months as local rates followed a drop in global prices. The All Pakistan Sarafa Association said a tola of gold lost Rs2,500, bringing it to Rs422,036.
The association said 10 grammes of gold declined by Rs2,144 to Rs361,686. In the international market, an ounce fell by $25 to $3,995, dipping below the $4,000 mark. Silver also edged lower, with a tola down Rs7 at Rs5,858.
Key factors behind gold price movements in Pakistan
The latest fall came after a Rs7,000 drop in the per-tola price in the local market on Friday. According to the association’s figures, domestic gold has now reached its lowest point in five months.
Also read: Gold prices drop in Pakistan as oil rises amid global uncertainty
Gold prices in both global and domestic markets are shaped by several forces, including swings in the US dollar, economic uncertainty worldwide, geopolitical tensions and investor sentiment. Investors often turn to gold as a safe-haven asset when economic or political uncertainty rises, which can push demand and prices up.
When uncertainty eases, prices can come under downward pressure. In Pakistan, the international gold price and the exchange rate between the rupee and the US dollar are among the main factors determining rates in the local bullion market.
