Gold prices dropped on Thursday in both international and domestic markets after recently touching record highs in Pakistan.
In the international bullion market, the price of gold declined by $36 per ounce, settling at $3,618. This fall in global gold rates pushed local prices lower as well, with 24-carat gold slipping by Rs4,100 per tola to Rs384,000. The price of 10 grams of gold also decreased by Rs3,515 to Rs329,218.
Silver followed the same downward trend. The price of silver per tola fell by Rs36 to Rs4,326, while 10 grams dropped by Rs32 to Rs3,736.
Bullion dealers explained that the decline in gold prices was driven by international market corrections. They added that domestic demand for gold remains weak due to high price volatility.
Gold Price: Just a day earlier price in Pakistan had surged to an all-time high as investors turned to the safe-haven asset.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola rose by Rs4,100 to reach Rs388,100, while 10 grams of gold gained Rs3,514, hitting Rs332,733.
Earlier in the week, gold had already touched a record Rs384,000 per tola after climbing Rs6,100 in a single day.
On the international front, gold prices continued their rally as expectations of a possible September U.S. interest rate cut weighed on the dollar and Treasury yields. Investors also awaited key U.S. inflation data later in the week. Spot gold was up 0.7% at $3,661.09 per ounce as of 9:33 a.m. ET (1333 GMT), after hitting a record $3,666.38 earlier in the session. Meanwhile, U.S. gold futures for December delivery rose 0.7% to $3,701.40.
Market experts believe that ongoing global uncertainty and central bank policy expectations will keep safe-haven demand for gold strong in the near term.
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