Gold prices have gone into reverse gear in the bullion markets across the country, due to which a significant decline in prices has been recorded up to 1600 rupees to Rs 495362.
According to the All Pakistan Bullion Gems and Jewelers Association, the price of gold per tola has fallen by Rs 1,600 to Rs 495,362. Similarly, 10 grams of gold has also fallen by Rs 1,371 to Rs 424,693.
A decline in the price of gold has also been seen in the global market, where gold is trading at $ 4,730 per ounce. According to experts, gold prices continue to fluctuate due to changes in the global economic situation and investment trends, however, the situation is likely to become clearer in the coming days.
Local traders say that the ongoing tension and economic instability on the global horizon are adversely affecting the gold market, which may result in a significant decline in prices. Gold is usually expensive in times of uncertainty (war or political crisis), but the current economic uncertainty is taking a different turn:
When stock markets fall, big investors sell gold reserves to meet their margin calls in order to get cash. Decrease in consumer purchasing power: Due to global inflation, there has been a significant decrease in the purchase of jewellery by ordinary consumers, which has affected the physical market.
The price of gold in Pakistan is linked not only to the global market but also to the value of the rupee. According to experts. If gold falls by $50 to $100 per ounce in the global market, then a major decrease of Rs. 5,000 to Rs. 10,000 per tola can be seen in Pakistan.
Dealers at the local bullion market say that buyers are currently absent from the market due to fears of this potential drop in prices, and only those who need immediate cash are selling gold. Experts advise investors to remain cautious for now, as technical indicators are showing that gold could break its “support level” and fall further.
Read also: Uncertainty in global market: Gold prices likely to fall sharply
