The gold prices in Pakistan saw considerable movement this week, which indicates volatility in the international bullion market. On Monday, the local gold rate fell by Rs1,700 per tola with 24-carat gold priced at Rs274,500 per tola and 10-gram gold falling to Rs235,340 after a decline of Rs1,457.
The decline was due to a $17 drop in the world gold price, which stood at $2,633 per ounce. However, the silver rates remained stable, with per tola silver at Rs3,400 and 10-gram silver at Rs2,914.95 despite the fall in gold rates.
This trend followed Saturday when international rates for gold plunged by $11 at $2,650 an ounce. The local gold went down by Rs1,100 per tola. It was sold for Rs276,200 a tola. The value of 10-gram gold went down by Rs943 at Rs236,797 and silver prices remained stagnant.
Gold prices recovered on Tuesday to increase by Rs700 per tola, as 24-carat gold reached Rs275,200 per tola. The 10-gram gold price increased by Rs600 to settle at Rs235,940, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This increase followed a $7 rise in the international market, where gold traded at $2,640 an ounce, with a $20 premium. Silver prices remained unchanged at Rs3,400 per tola.
The gold price volatilities have been correlated to changing global economic conditions, as well as growing expectations over a U.S. interest rate cut. The bullion markets, global as well as local, would now be awaiting more data on the economy for additional guidance.
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