Gold prices in Pakistan recorded a sharp decline on Thursday, with the price of 24-karat gold falling by Rs10,900 per tola as international bullion markets experienced a significant sell-off.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold dropped to Rs416,536 per tola, compared with Rs427,436 in the previous trading session.
The price of 10 grams of 24-karat gold also declined to approximately Rs357,112, while 10 grams of 22-karat gold were quoted at around Rs327,030.
The downturn in the domestic market followed a decline in international gold prices, with spot gold trading near $3,951 per ounce.
International bullion reportedly experienced fluctuations ranging from approximately $27 to $109 below levels recorded earlier in the trading session, reflecting increased selling pressure across global markets.
Market participants attributed the decline to a strengthening US dollar and expectations that the US Federal Reserve could maintain a restrictive monetary policy or consider further interest rate increases.
Higher interest rates generally reduce the attractiveness of gold, which does not generate interest income, while a stronger dollar can make the precious metal more expensive for buyers using other currencies.
Traders said these factors encouraged investors to take profits following earlier gains in bullion prices, contributing to the downward pressure on international markets.
Gold prices in Pakistan are closely influenced by international bullion rates and movements in the rupee-dollar exchange rate.
As a result, fluctuations in global gold prices are frequently reflected in domestic markets, although exchange rate movements can either amplify or offset those changes.
The latest decline represents a significant single-session correction in local bullion prices, bringing some relief to prospective buyers after previous increases.
Market participants will continue monitoring international gold prices, US monetary policy expectations and currency movements for indications of the direction of domestic bullion rates in the coming sessions.