In an unexpected turn of events, gold prices in Pakistan have significantly decreased. This decline is occurring at a time when the international gold market is rising. According to data provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold has dropped by an astounding Rs 9,450. Consequently, the price of 24-karat gold has increased to Rs191,650.
The price of 10 grams of gold has decreased by over Rs8,000, concluding at Rs164,310 at market close.
The abrupt and significant decline in gold prices over the past two days can be attributed to the correction in the open market value of the US dollar.
Gold prices frequently travel in the opposite direction of the US dollar. When the dollar strengthens, gold prices typically decrease, whereas when the dollar weakens, gold prices typically increase. In this instance, the dollar’s price correction has made the Pakistani gold market more affordable.
While gold prices have declined in Pakistan, the international gold market has pursued a different path. On global markets, the price per ounce of bullion has increased by $2.42 and is currently around $1,826.
This disparity between the local and international markets illustrates the complex relationship between national economies and the international marketplace.