Gold Price in Pakistan Plunges Rs2,100 per Tola, Third Consecutive Day of Decline

Key facts

• Gold fell Rs2,100 to Rs477,862 per tola in Pakistan on Tuesday.
• 10 grams of 24-carat gold dropped Rs1,801 to Rs409,689.
• International gold declined $21 to $4,555 per ounce.
• Silver per tola fell Rs65 to Rs7,849.
• Monday saw a Rs3,800 drop per tola to Rs479,962.
• 10 grams of 22-carat gold fell Rs2,986 to Rs377,212 on Monday.
• International gold was at $4,576 per ounce on Monday.
• The decline marks the third consecutive day of falling prices.

Lede: Gold Extends Slide for Third Day

Gold prices in Pakistan continued their downward trajectory for a third consecutive day on Tuesday, with the All Pakistan Sarafa Association reporting a drop of Rs2,100 per tola. The new rate for 24-carat gold settled at Rs477,862 per tola, while 10 grams of the same purity fell by Rs1,801 to Rs409,689. The slide mirrors a broader retreat in international markets, where gold lost $21 per ounce to trade at $4,555. The persistent decline has erased significant value from the precious metal in both local and global arenas, catching the attention of investors and jewellers alike.

Tuesday's Decline in Detail

The All Pakistan Sarafa Association, the country's leading bullion body, released figures on Tuesday showing that the price of 24-carat gold per tola had decreased by Rs2,100 to Rs477,862. For smaller denominations, 10 grams of 24-carat gold dropped by Rs1,801 to Rs409,689. Silver also witnessed a downturn, with per tola rates falling by Rs65 to Rs7,849. The coordinated decline across precious metals suggests a broad-based sell-off rather than a gold-specific correction.

Monday's Larger Plunge Sets the Stage

The latest drop follows an even steeper decline on Monday, when gold prices in Pakistan fell by Rs3,800 per tola to Rs479,962. That day, 10 grams of 24-carat gold shed Rs3,257 to reach Rs411,490, while 10 grams of 22-carat gold dropped Rs2,986 to Rs377,212. In international markets on Monday, gold prices had already slipped to $4,576 per ounce, setting the stage for Tuesday's further losses. The consecutive declines have wiped out gains accumulated over previous weeks.

International Market Pressures

The international gold market has been under pressure, with prices falling $21 per ounce on Tuesday to $4,555. This follows Monday's level of $4,576, indicating a sustained bearish sentiment. Analysts attribute the global decline to a combination of factors, including a strengthening US dollar and expectations of tighter monetary policy. However, the specific triggers for the current three-day losing streak remain under scrutiny.

Wider Economic Context in Pakistan

The gold price slide comes amid broader economic challenges for Pakistan. The country's trade deficit has recorded a significant rise due to a decline in exports, adding to fiscal pressures. Meanwhile, the International Monetary Fund has held initial virtual consultations with Pakistan regarding upcoming budget targets, signalling ongoing engagement over the country's economic reform programme. These macroeconomic factors may influence investor sentiment towards safe-haven assets like gold.

Outlook and Market Sentiment

With three consecutive days of declines, market participants are watching closely for signs of a bottom. The All Pakistan Sarafa Association's daily announcements will be key indicators of whether the trend reverses or accelerates. Investors and jewellers are adjusting their positions, with some viewing the lower prices as a buying opportunity while others remain cautious amid the persistent downward momentum. The coming days will test whether the current correction is a temporary dip or the start of a longer-term trend.

The bottom line

• Gold in Pakistan fell Rs2,100 per tola on Tuesday, the third straight decline, to Rs477,862.
• International gold dropped $21 to $4,555 per ounce, mirroring local losses.
• Monday's decline was steeper at Rs3,800 per tola, with 22-carat gold at Rs377,212 per 10 grams.
• Silver also fell, down Rs65 per tola to Rs7,849.
• The declines occur against a backdrop of rising trade deficit and IMF consultations in Pakistan.
• Market awaits further direction as the three-day losing streak tests investor sentiment.