Gold Price Drops Rs3,800 per Tola as Pakistan Market Opens Lower

ISLAMABAD: Gold prices recorded a sharp decline in Pakistan on Monday as the domestic bullion market opened the new business week on a weaker note. The price of 24-karat gold fell by Rs3,800 per tola, bringing the benchmark rate down to Rs453,336 and extending the recent volatility in precious-metal prices.

The decline was also reflected in smaller trading units. According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, the price of 10 grams of 24-karat gold dropped by about Rs3,258, settling close to Rs388,670. The movement means both investors and consumers entered the week with noticeably lower benchmark prices than those recorded at the end of the previous trading session.

Gold had closed Saturday at Rs457,136 per tola after gaining Rs400 during that session. Monday's Rs3,800 reduction therefore erased the previous increase and pushed the domestic rate below the weekend level by a substantial margin. The latest move amounts to a decline of roughly 0.8 percent in the per-tola price from the previous quoted level.

Silver also moved lower in Pakistan's bullion market. The price of one tola of silver fell by Rs122 to Rs6,802, compared with Rs6,924 previously. The simultaneous decline in both precious metals indicates broad weakness in the local market rather than a move confined only to gold.

International bullion was quoted around $4,308 per ounce, with market reports indicating a decline of about $38 from the previous level. Global gold prices have been under pressure as investors reassess expectations for interest rates while higher energy prices add uncertainty to the inflation outlook. Changes in international bullion prices can quickly feed into Pakistan's market, where the rupee's value against the dollar is another important factor influencing local rates.

The latest fall is significant for Pakistan because gold remains widely followed as a store of value as well as an important input for the jewellery trade. A lower benchmark can reduce the rupee value of bullion holdings in the short term while potentially providing some relief to prospective buyers, although actual jewellery prices can differ because of purity, making charges and other retail costs.

Attention will now remain on movements in the international gold market, the rupee-dollar exchange rate and major global monetary-policy decisions. Any significant change in those factors could quickly alter domestic bullion rates again, keeping gold and silver prices volatile as traders, investors and consumers assess whether Monday's decline develops into a broader downward trend or proves temporary.