Gold prices recede further in local and international markets
The downward trend in gold prices continued on Friday in both international and domestic markets, driven by technical corrections and profit-taking by investors.
In the international bullion market, the price of gold fell by another $13 per ounce, bringing it down to $3,263. Analysts attribute the decline to ongoing market corrections and short-term profit booking by traders after recent highs.
Similarly, local gold prices in Pakistan also saw a notable decrease. The price of 24-karat gold fell by Rs1,300 per tola, settling at Rs344,500. The price for 10 grams of 24-karat gold dropped by Rs1,114, bringing it down to Rs295,353.
In contrast, silver prices remained stable. The per tola rate for silver stood unchanged at Rs3,427, while the price for 10 grams of silver remained steady at Rs2,938.
Market watchers suggest that gold prices may continue to show volatility in the short term due to global economic uncertainty and changing investor sentiment.
Significant price swing
Despite the recent decline, gold has witnessed a dramatic six-month rally characterized by sharp price swings and mounting geopolitical uncertainty, ultimately reaching record highs.
According to Adnan Agar, Director of Interactive Commodities, gold opened around $2,750 in November, briefly dropped to $2,500, and then surged to an all-time high of approximately $3,500, a long-anticipated milestone.
In Pakistan, bullion prices followed a similar trajectory, climbing from Rs295,000 to Rs350,000 per tola before easing slightly to around Rs346,000. The local gold market remains heavily influenced by international price movements.
This nearly $1,000 fluctuation underscores both investor anxiety and strategic buying in response to global instability. A major catalyst has been gold's reputation as a safe-haven asset, drawing increased demand during times of crisis.
Rising tensions across multiple regions, including the Russia-Ukraine war, the Israel-Hamas conflict, and renewed hostilities involving the US and Iran, have pushed risk-averse investors toward gold. Notably, between January and April 2024, the metal posted especially strong gains, rising by an estimated $600 to $700.
Political uncertainty in the United States, spurred by Donald Trump's presidential resurgence and aggressive tariff rhetoric, further fueled market unease and bolstered gold’s appeal.