Gold price decreases by Rs5,600 per tola in Pakistan

Karachi  (Web Desk)Gold prices in Pakistan witnessed a significant decline on the fifth trading day of the business week, with the price of a tola dropping by thousands of rupees.

According to the All Pakistan Gems and Jewellers Association, the price of gold fell by Rs5,600 per tola, bringing the new rate to Rs456,736.

The price of 10 grams of gold also decreased by Rs4,801, taking its price down to Rs391,577.

Market experts attribute fluctuations in gold prices to several factors, including changes in international bullion rates, movements in the US dollar, uncertainty surrounding the global economy and geopolitical tensions.

Gold is generally considered a safe-haven asset during periods of economic and political uncertainty. As investors turn towards gold to protect their wealth, increased demand can push its price higher.

Interest rate trends also play an important role in determining gold prices. A reduction in global interest rates, or expectations of future rate cuts, can increase the appeal of gold as a non-interest-bearing investment.

In Pakistan, local gold prices are influenced not only by international market trends but also by the exchange rate between the Pakistani rupee and the US dollar, making currency movements another key factor behind changes in domestic gold rates.