Gold prices fall both globally and locally after recent surge

Gold prices in Pakistan saw a sharp decline on Friday, following a recent surge in the market. The price of gold in the international bullion market dropped by $23 per ounce, bringing the price down to $2,930.

This decrease was also mirrored in local gold markets, where the price of 24-carat gold per tola fell by Rs2,000, settling at Rs307,000, whereas the price of gold per 10 grams in Pakistan dropped by Rs1,714, bringing it to Rs263,203.

Meanwhile, the price of silver also saw a dip, with the cost per tola falling by Rs38 to Rs3,430, while 10-gram silver dropped by Rs33 to Rs2,940.

In contrast, just a day earlier, gold prices in Pakistan had continued their upward momentum, hitting new highs on Thursday, in line with rising international prices.

On Thursday, the price of gold per tola had increased by Rs1,000, reaching an all-time high of Rs309,000, while the price of 10-gram gold had risen by Rs857, settling at Rs264,917, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

This increase followed a Rs3,800 jump per tola on Wednesday, which had already pushed prices to a record high.

On the global front, the price of gold had risen by $9 to $2,953 per ounce, including a $20 premium, as reported by the APSGJA.

Analysts had pointed to several factors fueling this upward trend, including a weaker US dollar, driven by the growing use of alternative currencies like the Chinese yuan in oil trade and ongoing US-led trade tensions. These factors had enhanced gold’s appeal as a hedge against currency depreciation.